Factory gate prices decline faster in June

MANILA, Philippines — Factory gate prices fell at a slightly faster pace in June as 12 out of 20 major industry groups registered declines, the Philippine Statistics Authority (PSA) reported yesterday.

The Producer Price Index (PPI) for manufacturing continued to descend at an annual rate of 3.9 percent in June, slightly faster than the revised decline of 3.7 percent in May and a reversal of the 1.4 percent growth in June 2019.

PSA attributed the downtrend of the PPI in June 2020 to declines in 12 major industry groups led by paper and paper products which registered a 12.5 percent decline.

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

Eight industry groups registered growths led by furniture and fixtures at 19.7 percent.

The other sectors that registered growths were beverages, food manufacturing, tobacco products, leather products, fabricated metal products, printing, and textiles.

Coming from the decline of 0.5 percent in May, however, the decline in June was slower month-on-month at 0.3 percent.

Beginning June 1, the National Capital Region as well as other areas were placed under general community quarantine, the less severe version of the previous quarantine modes.

More businesses were opened during the month but the movement of people, however, remained restricted to essential functions such as going to work and buying essential goods and services.