Factory gate prices post slower decline

MANILA, Philippines — Producer prices continued to decline at a slower pace in April due mainly to the faster increase in prices of computer and electronic products, according to  the Philippine Statistics Authority (PSA).

Preliminary data released by the PSA  showed the Producer Price Index (PPI) for manufacturing contracted by 0.8 percent in April, slower than the 1.1 percent decline in March.

The PPI posted a  growth of 2.5 percent in April last year.

For the four-month period, however, the average PPI  contracted by 1.1 percent.

PPI measures the average change in prices of goods made by domestic manufacturers and sold at factory gate prices to wholesalers and/or other consumers in the local market relative to a base period.

“The slower negative annual growth rate of PPI in April 2024 compared to the annual growth in March 2024 was primarily due to the faster increase in the annual growth rate of manufacture of computer, electronic and optical products industry division at 3.9 percent in April 2024 from 1.7 percent increase in March 2024,” the PSA said.

It said the computer, electronic and optical products industry division contributed 70.2 percent to the slower decline in the PPI rate in April.

Another main contributor to the slower PPI contraction in April was the faster increase in the transport equipment industry division at 1.4 percent from 0.7 percent in March.

Also cited as a main contributor to the PPI result was the slower decline in basic metals at 2.7 percent in April from the previous month’s 3.1 percent contraction.

Aside from computer and electronics and transport equipment, an industry division that also posted a faster uptick in April compared to March was electrical equipment.

Industry divisions such as beverages, food products, tobacco products, leather and related products including footwear and basic pharmaceutical products and pharmaceutical preparations posted slower positive growth rates in April from March.

Apart from basic metals, industry divisions, which registered slower declines in April from March are non-metallic mineral products; chemical and chemical products; furniture; wearing apparel and textiles.

Those which posted bigger contractions in April compared to the previous month are coke and refined petroleum products; fabricated metal products except machinery and equipment; paper and paper products; wood, bamboo, cane, rattan articles and related products; other manufacturing and repair and installation of machinery and equipment, as well as machinery and equipment except electrical.

Industry divisions with unchanged growth rates in April from the previous month are printing and reproduction of recorded media and rubber and plastic products.