The Philippine Star

Factory gate prices decline at softer pace in Oct

- By CZERIZA VALENCIA

Factory gate prices declined at a slower pace in October as more industries slash prices as a discountin­g strategy to stimulate sales, the Philippine Statistics Authority (PSA) said yesterday.

The PSA’s Producers Price Index (PPI) for Total Manufactur­ing in October contracted by 3.3 percent annually, slower than the 4.2 percent drop in September and tracks the 0.9 percent annual decline in October 2019.

The PSA attributed the sustained contractio­n to the decline in the factory gate prices of 13 industry groups led by paper and paper products, which saw a slower contractio­n of 9.9 percent in October from 12.4 percent in September.

On the other hand, seven industry groups led by furniture and fixtures registered positive growth in October, five of which at a faster clip coming off September.

Other industries that registered continued contractio­ns in factory gate prices were transport equipment, petroleum products, electrical machinery, machinery except electrical, rubber and plastic products, chemical products, non- metallic mineral products, basic metals, wood and wood products, miscellane­ous manufactur­es, footwear and wearing apparel, and textiles.

Among those that registered positive growth in producer prices, meanwhile, were food manufactur­ing, beverages, tobacco, fabricated metal products, printing and leather products.

Month-on-month, the PPI for manufactur­ing rose marginally by 0.002 percent in October following a marginal contractio­n of 0.007 percent in September.

The minimal month- onmonth growth in factory gate prices was driven by price gains in petroleum products.

On the other hand, the Purchasing Managers’ Index ( PMI) for the domestic manufactur­ing industry indicated that the prices of some products rose marginally in October as firms passed on some of the cost burden to consumers.

Supply chain issues were also evident during the month as seen in the lengthenin­g of delivery times which PMI respondent­s attributed to supply shortages and transporta­tion restrictio­ns.

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