Factory gate prices contract, PSA reports
In October
At A Glance
- Factory gate prices decreased by 0.3% annually in October, per the Philippine Statistics Authority.<br>This contrasts with 7.3% growth in the producer price index (PPI) in the same month last year and a 0.2% deceleration in September.<br>The manufacture of food products, with the highest PPI weight, contributed to the faster decline in October at 62.2%.<br>Declines were also seen in the manufacture of coke and refined petroleum products (7.2% from 6.5%) and fabricated metal products (1.7% from 2.8%).<br>Among 19 industry divisions, 10 experienced yearly drops while nine saw growths, with the manufacture of beverages showing the fastest yearly increase at 11.4%.<br>Month-on-month manufacturing PPI rose by 0.01% in October, following a 0.001% rate in September 2023 and a 0.1% increase in October 2022.<br>The monthly increase was driven by a 2.3% growth in the manufacture of beverages, contrasting with zero percent growth in the previous month.
Factory gate prices posted an annual decrease of 0.3 percent in October this year, the Philippine Statistics Authority (PSA) reported Wednesday, Nov. 29.
This was a reversal of the 7.3 percent of the producer price index (PPI) growth recorded in the same month a year earlier and slightly faster deceleration compared to 0.2 percent in September.
The manufacture of food products, which has the highest weight to the PPI, contributed the faster decline in October with 62.2 percent.
The other main contributors to the contraction were the declines in the manufacture of coke and refined petroleum products at 7.2 percent from 6.5 percent and the manufacture of fabricated metal products, except machinery and equipment at 1.7 percent from 2.8 percent.
Of the 19 industry divisions, 10 experienced yearly drops in the month, while nine saw yearly growths in activity during the period. The fastest yearly increase was observed in the manufacture of beverages at 11.4 percent.
In October of this year, there was a 0.01 percent rise in the month-on-month manufacturing PPI, following a rate of 0.001 percent in September 2023. In comparison, October 2022 saw a monthly increase of 0.1 percent.
The leading factor behind the monthly increase in PPI during the period was the manufacture of beverages which saw a 2.3 percent growth in the period from the zero percent monthly growth rate in the previous month.
Other contributors to the monthly rise include the manufacture of food products which declined to 0.02 percent from a 0.6 percent monthly decrease and the manufacture of chemical and chemical products which increased to 0.3 percent from a 0.3 percent monthly decline in the previous month.
“These three industry divisions contributed 90.3 percent to the higher month-on-month increase of PPI for manufacturing in October 2023,” the PSA said.
Further, seven experienced monthly increases, while 10 demonstrated decreases compared to the previous month, and two showed a month-on-month growth rate of zero percent during the period.