Factory gate prices drop faster in August

MANILA, Philippines — Factory gate prices declined at a faster pace in August, when Metro Manila and other areas were placed under a strict community quarantine anew, according to the Philippine Statistics Authority (PSA).

The Producer Price Index (PPI) for manufacturing slid at a faster clip of 4.4 percent in August from three percent in July, both reversals from the 1.5 percent growth in August 2019.

The downward trend in the PPI in August can be attributed to the contraction in the indexes of 15 industry groups led by transport equipment with a 10.6 percent annual decline.

Other sectors that saw declines in factory gate prices were petroleum products, machinery except electrical, electrical machinery, chemical products, basic metals, paper and paper products, footwear and wearing apparel, rubber and plastic products, wood and wood products, miscellaneous manufactures, non-metallic mineral products, leather products and textiles.

Bucking the trend were five industry groups led by furniture and fixtures that registered a 16.6 percent growth in August, although slower than the growth of 19.4 percent registered in July.

Others that registered growth in producer prices in August were beverages, food manufacturing, tobacco products, and fabricated metal products.

Month-on-month, the PPI declined by 0.4 percent, reversing the 0.1 percent growth in July. In August 2019, the PPI grew by 0.9 percent.