VALUE OF PRODUCTION INDEX (VPI)
The VPI in key manufacturing enterprises went up by 5.7 percent in August to 485.5 from 459.4 a year ago. On a month-on-month comparison, the VPI also registered an increase of 2.9 percent from 471.7 in July 1997. These figures were based on the results of the Survey of Key Enterprises in Manufacturing (SKEM), a regular monthly survey of the National Statistics Office aimed to provide flash indicators on the performance of key manufacturing enterprises.
· Year-on-year
Annual increases were observed in 9 out of 16 major sectors. Similar to last month, electrical machinery led all sectors with a 54.9 percent growth. This translated to the biggest contribution, at 70.1 percent, to the positive component of the annual growth of VPI. The increase can again be attributed to the gains in production of microcircuits. The other sector which a posted double-digit share to VPI growth of 14.7 percent was basic metals.
However, two sectors posted double-digit year-on-year decreases in VPI. Food manufacturing with a decline of -13.8 percent posted the largest share of 51.8 percent to the negative component of the annual VPI growth. This was followed by textile with a decline of -17.0 percent which was equivalent to 17.0 percent of the downward pull on the annual growth of VPI.
· Month-on-month
On a month-on-month basis, the 2.9 percent overall increase could be attributed to increases observed in four sectors. Electrical machinery registered the highest increase of 12.1 percent which represented the largest share of 28.9 percent to the positive component of the monthly VPI growth. Other sectors which notably contributed to the positive VPI growth component were food manufacturing with a 6.2 percent increase and an equivalent 28.3 percent contribution to growth; petroleum products, with a 4.0 percent gain and an equivalent 17.7 percent contribution; and basic metals, with an 8.8 percent rise and an equivalent 14.0 percent contribution.
On the other hand, five sectors significantly contributed to the negative downside effects on the month-on-month VPI performance. These were: chemicals with a decline of -4.2 percent equivalent to a 35.1 percent contribution; non-metallic mineral products (-6.3% dip), 20.3 percent; transport equipment (-3.8% decrease), 15.0 percent; beverage (-6.1% decline), 12.2 percent; and wearing apparel (-2.0% decrease), 11.4 percent.
VALUE OF PRODUCTION INDEX (AUGUST 1997)
GAINERS OVER LAST YEAR YEAR-ON-YEAR CONTRIBUTION TO
(unweighted) THE OVERALL
GROWTH GROWTH RATE
Electrical Machinery 54.9% 70.1%
Basic Metals 17.4% 14.7%
Beverage 16.3% 4.2%
Non-Metallic Mineral 12.1% 5.1%
Products
Tobacco 11.9% 0.3%
Miscellaneous 8.9% 0.5%
Manufactures
Furniture & Fixtures 7.2% 0.5%
Petroleum Products 1.9% 4.4%
Rubber Products 1.0% 0.2%
LOSERS OVER LAST YEAR YEAR-ON-YEAR CONTRIBUTION TO
(unweighted) THE OVERALL
GROWTH GROWTH RATE
Textile -17.0% -17.0%
Food Manufacturing -13.8% -51.8%
Paper & Paper Products -12.0% - 8.7%
Transport Equipment -11.3% - 9.0%
Wearing Apparel - 7.1% - 8.3%
Wood & Wood Products - 3.3% - 2.3%
Chemicals - 1.7% - 2.9%
GAINERS OVER LAST MONTH MONTH-ON-MONTH CONTRIBUTION TO
(unweighted) THE OVERALL
GROWTH GROWTH RATE
Electrical Machinery 12.1% 28.9%
Basic Metals 8.8% 14.0%
Textile 7.6% 9.1%
Food Manufacturing 6.2% 28.3%
Petroleum Products 4.0% 17.7%
Wood & Wood Products 2.0% 1.6%
Furniture & Fixtures 1.7% 0.2%
Paper & Paper Products 0.2% 0.1%
LOSERS OVER LAST MONTH MONTH-ON-MONTH CONTRIBUTION TO
(unweighted) THE OVERALL
GROWTH GROWTH RATE
Tobacco - 7.7% - 1.3%
Non-Metallic Mineral - 6.3% -20.3%
Products
Miscellaneous - 6.2% - 2.5%
Manufactures
Beverage - 6.1% -12.2%
Chemicals - 4.2% -35.1%
Transport Equipment - 3.8% -15.0%
Wearing Apparel - 2.0% -11.4%
Rubber Products - 1.6% - 2.2%
VOLUME OF PRODUCTION INDEX (VoPI)
The VoPI is derived from the VPI and Producer's Price Index with 1992 as the base year. The index is a measure of change in volume, net of inflation.
· Year-on-year
The VoPI for key manufacturing enterprises was 162.11 in August 1997 reflecting a year-on-year increase of 3.9 percent. Electrical machinery posted the biggest increase of 57.9 percent which corresponded to the biggest contribution of 71.6 percent to the positive component of the annual VoPI growth. Three other sectors posted double-digit increases and these were beverage with a 30.5 percent growth, basic metals with a 16.1 percent gain, and non-metallic mineral products with a 14.4 percent increase. The corresponding contribution to overall growth of these sectors were 7.7 percent, 13.2 percent and 5.9 percent.
However, four sectors registered double-digit year-on-year decreases. Petroleum declined by -14.5 percent which contributed 31.4 percent to the downward pull on VoPI growth. Other sectors which posted double-digit contributions to the downside of VoPI growth were: wearing apparel (-37.2% decline), 25.3 percent; textile (-23.3% decrease), 13.5 percent; and paper and paper products (-24.5% dip), 10.5 percent.
· Month-on-month
On a monthly basis, the VoPI increased by 2.6 percent from 157.9 in July 1997. Electrical machinery had the biggest growth of 12.0 percent which represented 30.5 percent of the positive component of the month-on-month growth. Other sectors that significantly contributed to the positive growth were: food manufacturing (7.5% increase) with a 35.8 contribution; basic metals (8.0% rise), 13.4 percent; and petroleum (2.3% gain), 10.8 percent.
On the other hand, four sectors posted significant contributions to the negative component of the month-on-month performance of the VoPI. Chemicals declined by -5.1 percent contributing 30.8 percent to the downside of the VoPI growth while the -5.1 percent decrease of electrical machinery, -6.8 percent decrease of wood and wood products, and -3.6 percent decrease of transport equipment had corresponding contributions of 21.0 percent, 16.5 percent and 10.2 percent.
The August 1997 SKEM covered 422 sample establishments located mostly in Metro Manila and engaged primarily in manufacturing. This report is based on a response rate of 82.5 percent.
VOLUME OF PRODUCTION INDEX (AUGUST 1997)
GAINERS OVER LAST YEAR YEAR-ON-YEAR CONTRIBUTION TO
(unweighted) THE OVERALL
GROWTH GROWTH RATE
Electrical Machinery 57.9% 71.6%
Beverage 30.5% 7.7%
Basic Metals 16.1% 13.2%
Non-Metallic Mineral 14.4% 5.9%
Products
Other Manufacturing 8.6% 0.4%
Industries
Furniture & Fixtures 6.2% 0.4%
Rubber Products 5.2% 0.9%
LOSERS OVER LAST YEAR YEAR-ON-YEAR CONTRIBUTION TO
(unweighted) THE OVERALL
GROWTH GROWTH RATE
Wearing Apparel -37.2% -25.3%
Paper & Paper Products -24.5% -10.5%
Textile -23.2% -13.5%
Petroleum -14.5% -31.4%
Wood & Wood Products -13.0% - 5.2%
Transport Equipment - 8.9% - 4.2%
Chemicals - 7.2% - 7.2%
Tobacco - 6.4% - 0.1%
Food Manufacturing - 1.2% - 2.7%
GAINERS OVER LAST MONTH MONTH-ON-MONTH CONTRIBUTION TO
(unweighted) THE OVERALL
GROWTH GROWTH RATE
Electrical Machinery 12.0% 30.5%
Basic Metals 8.0% 13.4%
Food Manufacturing 7.5% 35.8%
Textile 7.3% 9.3%
Petroleum 2.3% 10.8%
Furniture & Fixtures 1.7% 0.2%
LOSERS OVER LAST MONTH MONTH-ON-MONTH CONTRIBUTION TO
(unweighted) THE OVERALL
GROWTH GROWTH RATE
Tobacco - 7.7% - 1.0%
Wood & Wood Products - 6.8% -16.5%
Beverage - 6.1% - 8.8%
Wearing Apparel - 5.1% -21.0%
Chemicals - 5.1% -30.8%
Non-Metallic Mineral - 3.7% - 8.6%
Products
Transport Equipment - 3.6% -10.2%
Other Manufacturing - 2.5% - 0.7%
Industries
Rubber Products - 1.6% - 1.6%
Paper & Paper Products - 0.3% - 0.7%
