Factory gate prices decline in January

Producer prices of manufactured goods contracted in January due mainly to the slower increase in prices of computer, electronic and optical products, according to the Philippine Statistics Authority.

Data released by the PSA showed the Producer Price Index (PPI) for manufacturing registered a contraction of one percent in January from the 0.6 percent growth in December 2023.

The January PPI was also down from the 4.8 percent uptick posted in the same month in 2023.

The PPI measures the average change in the factory gate prices in the local market relative to a base period.

“The negative annual growth rate of PPI in January from a positive growth in the same month in the previous year was primarily due to the deceleration of the annual growth rate of manufacture of computer, electronic and optical products industry division at 1.7 percent in January from 3.7 percent in December 2023,” the PSA said.

The computer, electronic and optical products industry division contributed 38.7 percent to the downtrend in the annual rate of the PPI for manufacturing in January.

Likewise, beverages and fabricated metal products are the other main contributors to the decline in PPI.

Beverages registered a slower growth rate of 7.6 percent in January from the 11.7 percent increment in December 2023.

Meanwhile, fabricated metal products, except machinery and equipment registered a 3.1 percent contraction in January from the 2.7 percent positive growth in the previous month.

The PSA said six other industry divisions had positive growth rates in January such as food, transport equipment, tobacco products, electrical equipment, leather and related products including footwear and furniture.

In addition to fabricated metal products, 13 industry divisions registered negative growth rates in January.