Factory gate prices rise slower in April

MANILA, Philippines — Factory gate prices grew slower in April after accelerating in March, the Philippine Statistics Authority (PSA) reported yesterday.

Based on PPA data, the Producer Price Index (PPI) for manufacturing rose at a slower pace of 3.8 percent in April from 4.5 percent in March.

PSA attributed this to contractions in eight industry groups: food manufacturing, basic metals, chemical products, petroleum products, miscellaneous manufactures, wood and wood products, footwear and wearing apparel and textiles.

Month-on-month, the PPI declined 0.4 percent in April 2019 compared with the previous month’s 0.3 percent growth.

Fourteen major industry groups reversed their growth, led by wood and wood products.

In April, the Nikkei Philippines Manufacturing Purchasing Managers’ Index (PMI) indicated subdued demand as output and new orders grew at their slowest pace in nine months.

This was attributed mostly to a moderate decline in overseas demand.

As a result, there was reduced output and hiring of new workers.

Only a small number of firms raised prices, only to cover the higher cost of raw materials.