Producer Price Index : March 2020

Reference Number: 2020-071
Release Date: 30 April 2020

 

 

Table A  Year-on-Year and Month-on-Month Growth Rates of Producer Price Index
for Total Manufacturing
March 2020, February 2020 and March 2019

Category

March
2020
February
2020
March
2019

Producer Price Index (2000=100)

132.0

132.3 r

139.6

Year-on-Year Growth (%)

-5.4

-4.8 r

4.8

Month-on-Month Growth (%)

-0.2

0.2 r

0.5
r -revised
 

Year-on-Year

The Producer Price Index (PPI, 2000=100) for manufacturing continued to descend at an annual rate of 5.4 percent in March 2020. This rate of decrease is faster than the downward trend of 4.8 percent in February 2020. In March of the previous year, PPI increased at an annual rate of 4.8 percent.

The decline in the PPI in March 2020 can be attributed to the decreases in the indices of 15 major industry groups, with four major industry groups posting double-digit decrements namely:

leather products (-14.8%),
transport equipment (-12.4%),
wood and wood products (-11.9%), and
fabricated metal products (-10.4%).

On the other hand, furniture and fixtures, which climbed by 20.2 percent, led the five major industry groups that posted annual increases. (Tables 1 and A-1).

 

Month-on-Month

Month-on-month, the PPI posted a slight decrement of 0.2 percent in March 2020, after a 0.2 percent increment in the previous month. In March 2019, the PPI grew by 0.5 percent.

Eleven of the 20 major industry groups posted negative monthly growth rates in March 2020 which was led by petroleum products with a monthly rate of –6.5 percent. Furthermore, PPI for six major industry groups posted monthly increments while indices for three major industry groups remained the same (Tables 1 and A-2).

 

TABLE A-1  Year-on-Year Growth Rate (%) of Producer Price Index
by Major Industry Group
February 2020 and March 2020
(2000=100)
 

MAJOR INDUSTRY GROUP

March 2020
February 2020

Gainers

 

 

Tobacco Products

4.8

4.8

Beverages

2.9

2.8r

Furniture & Fixtures

20.2

20.1

Food Manufacturing

0.3

-0.5r

Printing

1.8

1.8

Losers

 

 

Transport Equipment

-12.4

-11.3

Electrical Machinery

-5.4

-3.3r

Petroleum Products

-9.5

0.8r

Chemical Products

-7.9

-10.0r

Basic Metals

-7.2

-5.0r

Fabricated Metal Products

-10.4

-10.2r

Machinery Except Electrical

-2.8

-3.4r

Non-Metallic Mineral Products

-3.6

-3.2r

Footwear & Wearing Apparel

-9.7

-10.3r

Wood & Wood Products

-11.9

-9.8r

Rubber & Plastic Products

-2.3

-2.8

Paper & Paper Products

-3.8

-3.8r

Leather Products

-14.8

-14.4

Textiles

-6.4

-4.6r

Miscellaneous Manufactures

-1.8

-1.6r

r - revised
Note:
1) Industry groups are ranked according to their contributions to the overall growth rate
 
 
 
TABLE A-2  Month-on-month Growth Rate (%) of Producer Price Index
by Major Industry Group
February 2020 and March 2020
(2000=100)
 

MAJOR INDUSTRY GROUP

March 2020
February 2020

Gainers

 

 

Food Manufacturing

0.7

0.4r

Chemical Products

1.4

-0.5r

Footwear & Wearing Apparel

0.8

1.5r

Paper & Paper Products

0.3

-0.8r

Beverages

0.1

0.3r

Leather Products

0.1

-1.4

Tobacco Products

0.0

4.4

Furniture & Fixtures

0.0

0.2

Printing

0.0

0.0

Losers

 

 

Petroleum Products

-6.5

-1.7r

Electrical Machinery

-0.6

1.9r

Basic Metals

-0.6

-1.7r

Transport Equipment

-0.2

-0.9

Machinery Except Electrical

-0.3

-0.9r

Non-Metallic Mineral Products

-0.4

-0.1r

Textiles

-0.6

0.9r

Fabricated Metal Products

-0.1

3.7r

Rubber & Plastic Products

b/

0.3

Wood & Wood Products

b/

-1.6r

Miscellaneous Manufactures

b/

-0.7r

r - revised
b/ - Less than 0.05 percent decrease
Note:
1) Industry groups are ranked according to their contribution to the overall growth rate

 

 

 

(Sgd.) CLAIRE DENNIS S. MAPA, Ph.D.
Undersecretary
National Statistician and Civil Registrar General

 
 
 
 
 

 
 
Technical Notes
 
  • Introduction
The Philippine Statistics Authority generates various price indices, one of which is the Producer Price Index (PPI). The PPI is generated from the results of the Producer Price Survey (PPS) which is conducted nationwide. The survey gathers monthly producer prices of selected products included in the market basket of PPI from sample establishments.
 
The PPI is used as a deflator of the Monthly Integrated Survey of Selected Industries (MISSI) to derive indicators for the Volume of Production Index (VoPI) and Volume of Net Sales (VoNSI).
 
  • Method of Index Computation
PPI utilizes the Paasche-type method of index computation. The weights are computed from the value of production from the Census of Philippine Business and Industry (CPBI) or Annual Survey of Philippine Business and Industry (ASPBI). The weights are updated as soon as new results of the ASPBI or CPBI are available and these are applied at the beginning of each survey year.
 
For the 2020 PPI, the weights of the major industry groups and industry sub-classes were computed based on the final results of the 2017 ASPBI for Manufacturing establishments with total employment of 20 and over.
 
The computation of PPI adopts the following formula:
 
Industry Class
 
 
Industry Class
 
 
Industry Group
 
 
Industry
 
 

Note:

Starting with January 2017 PPI, a link factor has been used to adjust weight effects to measure the correct price change.

 

  • Computation of Growth Rates

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

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

 
  • Imputation and Revision

Imputation is done for sample establishments that are in operation during the reference period but no received response during the release date. Results are revised accordingly when the actual data are received and these revisions are reflected in the next release.

 

  • Industry Coverage

Starting with the January 2013 reference month, the PPI utilizes the 2009 Philippine Standard Industrial Classification (PSIC) to classify sectors and industries. Selected industry classes of the 2009 PSIC were grouped to form the 20 major industry groupings of the 2020 PPS. These are presented in the table below.

2009 PSIC CODE

INDUSTRY DESCRIPTION

C10

Food manufacturing *

C11

Beverages

C12

Tobacco products

C13

Textiles*

C14, C152

Footwear and wearing apparel

C151

Leather products

C16

Wood and wood products*

C17

Paper and paper products

C18

Printing

C19

Petroleum products*

C20, C21

Chemical products*

C22

Rubber and plastic products*

C23

Non-metallic mineral products*

C24

Basic Metals*

C25

Fabricated metal products

C262, C275, C28, C263, C268

Machinery except electrical*

C261, C264, C27, C29301

Electrical machinery*

C29 except C29301, C30

Transport equipment

C31

Furniture and fixtures

C265, C266, C267, C32

Miscellaneous manufactures

* - Major industry groups categorized into industry sub-classes

 

 

See more at the Producer Price Survey (PPS) main page.

 

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Contact Information

Technical Inquiries:

Price Statistics Division
Economic Sector Statistics Service
+632 8376 1959