Factory gate prices decline at faster pace in July

August 31, 2024 | 12:00am

MANILA, Philippines — Manufacturers’ prices went down at a faster rate in July from a month ago due mainly to the decline in the prices of computer and electronic products, the Philippine Statistics Authority (PSA) said.

Preliminary data released by the PSA yesterday showed the Producer Price Index (PPI) for manufacturing posted a faster decline of 0.4 percent in July from the 0.2-percent contraction in June.

In July last year, the PPI registered a 0.2 percent drop.

The latest PPI result brought the average from January to July to -0.8 percent.

PPI measures changes in factory gate prices of locally manufactured goods sold to wholesalers and/or consumers in the domestic market.

The PSA said the faster decrease in PPI in July is due mainly to the deceleration in the annual growth rate of the manufacture of computer, electronic and optical products industry division at 1.7 percent from 3.6 percent in June.

The computer, electronic and optical products industry division contributed 81 percent to the downtrend in the PPI in July.

Transport equipment, which posted a slower growth of 2.5 percent in July from the 2.9 percent  increase in June, was also cited as a main contributor to the faster decline of PPI.

Another main contributor to the faster drop in PPI was the coke and refined petroleum products industry division, which posted a bigger contraction of 1.3 percent in July from the previous month’s 1.1 percent.

Of the remaining 19 industry divisions, seven exhibited decreases, while 12 had positive growth.

Posting declines in July were fabricated metal products except machinery and equipment; other non-metallic mineral products; rubber and plastic products; wood, bamboo, cane, rattan articles and related products; electrical equipment; textiles and furniture.

Those with positive growth in July are beverages; food products; basic metals; tobacco products; other manufacturing and repair and installation of machinery and equipment; machinery and equipment except electrical; chemical and chemical products; printing and reproduction of recorded media; wearing apparel; paper and paper products; basic pharmaceutical products and pharmaceutical preparations and leather and related products including footwear.