Factory gate prices contract in September

Philippine Tribune
Philippine Tribune

Louella Desiderio – The Philippine Star

November 1, 2023 | 12:00am

Data released by the PSA yesterday showed the Producer Price Index (PPI) for manufacturing contracted by 0.2 percent in September, reversing the 0.6 percent increase in August.

STAR / File

MANILA, Philippines — The growth in factory gate prices fell into negative territory in September due mainly to the slower expansion in electronic and optical products and food items, the Philippine Statistics Authority (PSA) said.

Data released by the PSA yesterday showed the Producer Price Index (PPI) for manufacturing contracted by 0.2 percent in September, reversing the 0.6 percent increase in August.

In September last year, the PPI posted a 7.7-percent growth.

PPI measures the average change in prices of goods produced by domestic manufacturers and sold at factory gate prices relative to a base period.

The index is generated from a monthly survey conducted by the PSA.

“Manufacture of computer, electronic and optical products industry division was the main driver to the annual decrease of producer price for manufactured goods,” the PSA said.

The computer, electronic and optical products industry division registered a slower growth of 0.02 percent in September from 2.8 percent in August.

Food products were also cited as among the main contributors to the decrease in the annual growth of PPI in September.

The food products industry division posted a 2.1-percent growth rate in September, lower than the 2.7-percent uptick in August.

Coke and refined petroleum products were also cited as another main contributor to the decline in PPI growth as the industry division registered a faster drop of 6.5 percent in September from the 5.6 percent decline in August.

Of the remaining 19 industry divisions, 12 exhibited negative annual growth rates in September. These are: transport equipment; chemical and chemical products; basic metals; electrical equipment; other non-metallic mineral products; wood, bamboo, cane, rattan articles and related products; wearing apparel; machinery and equipment except electrical; rubber and plastic products; basic pharmaceutical products and pharmaceutical preparations; other manufacturing and repair and installation of machinery and equipment; and textiles.

Meanwhile, seven industry divisions had positive annual growth rates in September such as paper and paper products; printing and reproduction of recorded media; furniture; leather and related products, including footwear; tobacco products; fabricated metal products, except machinery and equipment; and beverages.

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