Factory gate prices posted an annual decrease of 0.1 percent in June this year, the Philippine Statistics Authority (PSA) reported Tuesday, July 30.

This was a reversal of the 0.5 percent growth in the producer price index (PPI) recorded in the same month a year earlier and a slightly faster deceleration compared to a 0.8 percent decrease in May.

The manufacture of computer, electronic, and optical products industry division, which has the highest weight in the PPI, contributed to the faster decline in June, with 3.6 percent.

The other main contributors to the contraction were the decline in the manufacture of transport equipment, which fell 2.8 percent from 1.6 percent, and the manufacture of basic metals, which dropped 0.02 percent from 0.7 percent in June 2024.

Of the 22 industry divisions, 11 registered yearly drops in activity during the month, while 11 posted growths.

In June alone, the month-on-month manufacturing PPI rose 0.24 percent, following a rate of 0.20 percent in May 2024. In comparison, June 2023 saw a monthly decrease of 0.5 percent.

The leading factor behind the monthly increase in PPI during the period was the manufacture of machinery and equipment except electrical which saw a 2.2 percent growth in the period from the 0.2 percent monthly growth rate in the previous month.

Other contributors to the monthly rise include the manufacture of coke and refined petroleum products which increased to 0.2 percent from 0.02 percent, and manufacture of computer, electronic and optical products to 0.4 percent from 0.3 percent in the previous month.

“These three industry divisions contributed 61.0 percent to the uptrend in the month-on-month growth rate of PPI for manufacturing in June 2024,” the PSA said.

Further, 11 experienced monthly increases, while 9 demonstrated decreases compared to the previous month, and two showed a month-on-month growth rate of zero percent during the period.