Factory prices decline at slower pace in September

MANILA, Philippines — Factory gate prices declined at a slower pace in September as increases have been recorded in the majority of industry groups, the Philippine Statistics Authority (PSA) said.

Latest data from PSA showed that the Producer Price Index (PPI) for September declined 0.6 percent, slower than the one percent contraction level in August.

It was also significantly relaxed than the decline of 5.2 percent in September 2020.

The PSA attributed the decline to the contraction rates in the indexes of 10 industry groups led by the manufacture of computer, electronic and optical products which went down 17.4 percent.

Other significant decrements were also noted in the manufacture of wood, bamboo, cane, rattan articles and related products.

Meanwhile, 12 industry groups registered growth in September with coke and refined petroleum products posting the fastest growth at 17.9 percent.

Others were basic metals, chemical and chemical products, rubber and plastic products, textiles, electrical equipment, and textiles among others.

The PPI for manufacturing measures the changes in the producer price of key commodities produced by the sector. One of its uses is as a deflator to derive the  Volume of Production Index and Volume of Net Sales Index.