Value and volume of production of manufacturing establishments in August 1998 decreased by 7.6 percent and 17.0 percent, respectively, last year as reflected by the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). Sales value and volume also declined by 12.8 percent and 23.3 percent, respectively.

Largely contributing to the fall were petroleum, transport, basic metals and non-metallic minerals.

The petroleum refineries faced with a weak market declined by 15.8 percent in value and 15.2 percent in volume. Sales value of the refineries dropped by 23.1 percent and sales volume, by 27.7 percent.

Value and volume of production in transport dropped by 51.4 percent and 58.4 percent, respectively. Sales value and sales volume likewise fell by 38.5 percent and 47.4 percent, respectively.

The slowdown in the construction sector also pulled down the value and volume of production of related industries. Basic metals decreased by 30.8 percent in value and 39.1 percent in volume of production. Sales dropped by 37.1 percent in value and 43.6 percent in volume, respectively. Non-metallic minerals sector also declined, in particular, the value of cement production which dipped by 15.9 percent. Sales recorded by the non-metallic minerals sector was down by 44.2 percent in value and 40.1 percent in volume.

On the other hand, sectors exhibiting year-on-year growths in August in terms of both sales and production volumes were electrical machinery, which grew by 2.3 percent in production and 4.3 percent in sales; beverages, 7.3 percent in production and 28.1 percent in sales; and tobacco, 6.0 percent in production and 9.5 percent in sales.

Reported capacity utilization, which is defined as the ratio of output to the maximum rated capacity of the plant, reflected the slowdown in production as the percentage of those whose capacity utilization was below 70% moved up from 32 percent in August last year to 40 percent this year. Some 16 percent of the sample firms reported a capacity utilization of 90-100% compared to 21 percent last year, and those with below 50% capacity utilization went up to 12 percent from 9 percent.

These results were based on the response of 396 sample firms/ establishments which are 72 percent of the total number of sample enterprises (550) covered by the survey.

The MISSI is the result of the integration of NSO SKEM and DTI-MIS Survey.

^r - revised due to updating of data from late responding establishments.

ANNEX 1-A

VALUE OF PRODUCTION

Year-on-year

Year-on-year decreases were observed in 6 of 16 major sectors which led to a 7.6 percent decline in value of production. Posting the biggest drop among the sectors was petroleum products which declined by 15.8 percent due to low demand. Other sectors that posted year-on-year declines were transport equipment (-51.4%), basic metals (-30.8%), non-metallic mineral products (-15.9%), miscellaneous manufactures (-25.0%), and rubber products (-2.6%).

On the other hand, food manufacturing continued to post double-digit increases since early this year, growing year-on-year by 30.2 percent this month. Increased production in coconut products and vegetable and animal oils and fats contributed significantly to the growth in the food sector. This was followed by electrical machinery (19.8%) propped up by electrical appliances and microcircuits; chemicals (18.0%), due to increased production of fertilizers, plastic products and basic industrial chemicals; paper & paper products (38.9%); textile (11.1%); and beverage (14.7%).

Month-on-month

On a month-on-month basis, the value of production decreased by 4.7 percent. Eleven sectors suffered declines, led by petroleum products which dropped by 11.2 percent. Other sectors that contributed to the negative performance were basic metals (-26.4%), chemicals (-15.6%), food manufacturing (-5.8%), non-metallic mineral products (-14.7 %), wearing apparel (-7.4%), wood & wood products (-5.1%), furniture & fixtures (-11.8%), and transport equipment (-1.0%).

On the other hand, five sectors posted increases led by textile (11.2%), electrical machinery (2.7%), paper & paper products (4.3%), beverage (5.8%), and rubber products (2.7%).

Note: Sectors are ranked according to their contribution to the overall August 1998 growth rate.
^r - revised due to updating of data from late responding establishments.

ANNEX 1-B

VOLUME OF PRODUCTION

Year-on-year

The volume of production index (VoPI) for manufacturing decreased by 17.0 percent due to the decline in nine out of 16 sectors led by petroleum refineries which dropped by 15.2 percent. Other sectors which largely contributed to the downward pull on overall VoPI were basic metals (-39.1%), transport equipment (-58.4%), and wearing apparel (-38.8%).

On the other hand, leading sectors that registered growths were food manufacturing (11.1%), paper & paper products (19.0%), chemicals (2.8%), and electrical machinery (2.3%).

Month-on-month

On a monthly basis, eleven sectors registered negative growths leading to a 4.7 percent drop in VoPI. Petroleum refineries which declined by 11.2 percent contributed largely to the decrease in overall VoPI. Other sectors that significantly contributed to the downward pull of the overall month-on-month growth were basic metals (-26.8%), chemicals (-15.5%), and food manufacturing (-6.2%).

On the other hand, five sectors registered increases led by textile with 11.2 percent, followed by electrical machinery (2.3%), paper & paper products (4.3%), beverage (5.8%), and rubber products (2.7%).

ANNEX 2-A

VALUE OF NET SALES

Year-on-year

The value of net sales for August 1998 recorded a decline of 12.8 percent compared to the same month last year. Ten sectors posted decreases led by petroleum products which dropped by 23.1 percent. Other sectors that recorded declines were basic metals (-37.1%), transport equipment (-38.5%), non-metallic minerals (-44.2%), wood & wood products (-33.2%), chemicals (-11.0%), food manufacturing (-5.0%), paper & paper products (-23.7%), textile (-13.2%), rubber products (-25.2%), beverages (-10.1%), and miscellaneous manufactures (-0.9%).

On the other hand, four sectors posted growths. Electrical machinery registered the biggest growth of 21.9 percent. Other sectors that posted increases were wearing apparel (6.7%), furniture & fixtures (66.8%), and tobacco (15.4%).

Month-on-month

On a month-on-month basis, the value of net sales posted a decrease of 12.5 percent over the previous month with petroleum products registering the biggest drop of 37.7 percent. Other sectors posting decreases were basic metals (-31.2%), textile (-33.2%), paper & paper products (-32.4%), chemicals (-10.5%), transport equipment (-13.6%), non-metallic minerals (-14.5%), wearing apparel (-5.7%), rubber products (-10.5%), miscellaneous manufactures (-15.3%), and food manufacturing (-0.1%).

On the other hand, five sectors posted increases on their month-on-month net sales value: beverages (75.6%), electrical machinery (9.8%), wood & wood products (7.6%), furniture & fixtures (16.1%), and tobacco (3.7%).

ANNEX 2-B

VOLUME OF NET SALES

Year-on-Year

The volume of net sales for August 1998 posted a decline of 23.3 percent over the same month last year. Decreases were posted by twelve sectors. Petroleum products posted the largest decrease of 27.7 percent, followed by food manufacturing (-17.2%), basic metals (-43.6%), chemicals ( -25.3%), wearing apparel (-36.6%), transport equipment (-47.4%), non-metallic minerals (-40.1%), paper & paper products (-34.6%), wood & wood products (-35.9%), textile (-22.3%), rubber products (-28.6%), and miscellaneous manufactures (-21.2%).

On the other hand, four sectors posted increases led by beverages with 28.1 percent. Other sectors that posted increases were electrical machinery (4.3%), furniture & fixtures (58.1%), and tobacco (9.5%).

Month-on-Month

On a month-on-month basis, the volume of net sales decreased by 11.3 percent over the previous month. Petroleum products led the sectors with a decline of 27.9 percent, followed by textile with 33.2 percent. Other sectors recording declines were basic metals (-23.5%), paper & paper products (-32.4%), chemicals (-10.4%), transport equipment (-13.6%), non-metallic minerals (-13.3%), wearing apparel (-7.0%), rubber products (-10.4%), food manufacturing (-0.5%) and miscellaneous manufactures (-15.5%).

On the other hand, sectors that posted increases were electrical machinery with a growth of 9.4 percent, followed by beverages which increased by 23.4 percent. Other sectors that posted positive growths were wood & wood products (7.6%), furniture & fixtures (16.1%), and tobacco (3.7%).