THE manufacturing producer price index (PPI) continued to contract in September, the Philippine Statistics Authority (PSA) reported on Wednesday.
The 1.4-percent drop worsened from August’s -1.1-percent. A year earlier, the index also contracted by 0.3 percent.
PPI has now contracted for every month of 2024 and year to date is down by 0.9 percent.
“The faster annual decrement of PPI in September 2024 … was primarily due to the decline in the annual growth rate of the manufacture of transport equipment industry division at 1.0 percent …from a 1.6 percent annual increment in August 2024,” the PSA said in a statement.
Manufacture of transport equipment, which out of 22 manufacturing divisions had the third-highest weight in the computation of the PPI, accounted for 45 percent of the decline, it added.
Other contributors were the manufacture of computer, electronic and optical products (-0.8 percent from 0.2 percent), and the manufacture of other nonmetallic mineral products (-3.1 percent from -2.1 percent).
Of the remaining 19 industry sectors, nine experienced contractions, while 10 posted growth.
Month on month, meanwhile, the manufacturing PPI posted a slower decrease of 0.27 percent in September from August’s -0.33 percent. It also fell a year earlier by a much slower 0.01 percent.
The manufacture of basic metals, which grew by 0.5 percent after declining by 1.3 percent in August, was said to be the top contributor.
Rounding up the top three were the manufacture of beverages (1.6 percent from 0.005 percent), and manufacture of coke and refined petroleum products (0.02 percent from -0.7 percent).
“These three industry divisions contributed 74.2 percent to the slight uptrend in the month-on-month growth rate of PPI for manufacturing in September 2024,” the PSA said.
Of the other 19 industry divisions, six posted improvements, 11 contracted and two were unchanged.
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