October 2, 2022 | 00:00
MANILA, Philippines — Ex-factory prices recorded slower growth in August compared to the previous month, even as most commodity groups posted year-on-year increases, according to the Philippine Statistics Authority (PSA).
Preliminary data released by the PSA showed the producer price index (PPI) for the manufacturing sector posted a slower annual growth rate of 7.3% in August compared to the 8% expansion. in July.
In August of last year, the PPI fell by 0.4%.
“The increase in the PPI in August 2022 can be attributed to the annual increases in the indices of 20 industrial divisions,” the PSA said.
While 20 industrial divisions posted positive growth rates in August, 14 of them saw slower increases compared to the previous month, such as food products; coke and refined petroleum products; computer, electronic and optical products; non-metallic mineral products; base metals; chemical and chemical products; rubber and plastic products; paper and paper products; tobacco products; textiles; electrical equipment; other manufacture and repair and installation of machinery and equipment; basic pharmaceuticals and pharmaceutical preparations and leather and related products, including footwear.
Those which experienced faster growth in August compared to July are transport equipment; fabricated metal products, except machinery and equipment; furniture; and articles of wood, bamboo, cane, rattan and related products.
Those that maintained their growth rate from the previous month in August were beverages and clothing.
On the other hand, two divisions of the industry recorded contractions in August such as printing and reproduction of recorded media and machinery and equipment except electrical.
On a monthly basis, the PPI posted a negative growth rate of 0.2% in August compared to the 0.6% increase in July.
The PPI measures the changes in the producer price of the main commodities of the sector.
It is based on a nationwide survey by collecting monthly producer prices of selected products included in the PPI consumption basket from sampled establishments.
The index is used as a deflator to derive the production volume index and the net sales volume index.