·  Producer Price Index maintains downward trend

The Producer Price Index (PPI, 2000=100) for the manufacturing industry dropped by 1.6 percent in June 2009, compared with the year ago level, according to the preliminary results of the Monthly Producer Price Survey. Nine major sectors registered price decreases, led by furniture and fixtures with a two-digit decrease of 34.6 percent followed by petroleum products (-29.3%) and basic metals (-11.7%) respectively. However, increases in the PPI were observed in eleven major sectors led by wood and wood products (21.3%), footwear and wearing apparel (14.1%) and textiles (10.6%). Refer to Tables 1 and 1-A.

PPI on a month-on month basis, however, went up by 0.9 percent in June. This was due to the price increases observed in nine major sectors led by petroleum products with 8.0 percent increase. Meanwhile, flat growth in prices of commodities were posted for the following major sectors, namely: food manufacturing, tobacco products, wood and wood products, publishing and printing, and leather products. Refer to Tables 1 and 1-B.

·  Response Rate

The response rate for June 2009 is 94.0 percent, which corresponds to the retrieval of 296 sample establishments reports. Refer to Table 2.

Response Rates for Total Manufacturing
(In percent)

·  Technical Notes

The 2009 PPI Release utilizes the amended 1994 PSIC. Rubber and Plastic Products is a new major sector, consisting of two sub-sectors, namely: Rubber Products and Plastic Products . Rubber Productswas previously a major sector while Plastic Products was one of the sub-sectors of Chemical Products.

Previously, with seven sub-sectors, the major sector of Chemical Products now has six sub-sectors, namely: Basic Chemicals and Industrial Gases, Fertilizers, Paints, Drugs and Medicines, Cosmetics and Toilet Preparations and Miscellaneous Chemicals.

The weights of the major sectors and sub-sectors have been computed utilizing the results of the 2006 Census of Philippine Business and Industry for Manufacturing Establishments of ATE 20 and over. This allow the use of current available weights.

Thus, in this publication, the results of the PPI were recomputed with 2006 CPBI as weights beginning January 2009.

Non-responding sample establishments are estimated using cold-deck imputation method. Revisions to the preliminary estimates are done upon receipt of actual reports from late respondents.

TABLE 1-A. PRODUCER PRICE INDEX, MAY 2009 - JUNE 2009 
(2000=100)

TABLE 1-B. PRODUCER PRICE INDEX, MAY 2009 - JUNE 2009 
(2000=100)

Note:

a/ - new sector in the 2000-based series

b/ - Less than 0.1 percent decrease

Sectors are ranked according to their contribution to the overall 2000-based growth rate.

Year-on-year growth rates are computed by dividing the current month index by previous year same month index less 1.

Month-on-month growth rates are computed by dividing the current month index by previous month index less 1

Source:   National Statistics Office
                 Manila, Philippines