• Value of Production Index (VaPI) drops in August 2002

For August 2002, Value of Production Index (VaPI) of the manufacturing industry dropped by 8.5 percent compared with year ago figure, according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). Sectors that contributed largely to the decrease were petroleum products, machinery excluding electrical, basic metals, paper and paper products, chemical products and miscellaneous manufactures (see Table 1-A). Low demand of products and closure of firms are the major reasons for the slowdown in factory output of the sectors cited.

Meanwhile, VaPI's month-on-month performance improved by 0.4 percent compared to the previous month's decrease of 4.7 percent. This was due to the growth of the following sectors: furniture and fixtures, machinery excluding electrical, textile and rubber products (see Table 1-A).

• Volume of Production Index (VoPI) decreases further

Volume of Production Index (VoPI), likewise, followed the trend as it fell to 12.0 percent in August 2002 on a year-on-year basis. Significant decreases were observed in the following sectors: petroleum products, machinery excluding electrical, basic metals, paper and paper products, publishing and printing, transport equipment, chemical products and wood and wood products (see Table 1-B).

On a monthly basis, VoPI slightly slowed down by 0.3 percent due to the slackened growth of two (2) sectors, namely tobacco and petroleum products (see Annex 1-B).

• Value of Net Sales slides

The value of net sales also made a turnaround, posting a decline of 4.7 percent from its previous month's year-on-year increase of 5.2 percent. Major sources of decrease were from tobacco, publishing and printing, electrical machinery and petroleum products (see Table 2-A).

Compared to the previous month, value of net sales continued to fall at 1.4 percent in August 2002. Among the sectors, electrical machinery and basic metals reported double-digit decreases of 27.2 percent and 12.7 percent, respectively (see Table 2-A).

• Net Sales Volume falls

On a year-on-year basis, net sales volume dipped by 9.1 percent from a positive growth rate of 1.0 percent in the previous month. Sectors that attributed to the weakening growth were publishing and printing, tobacco, electrical machinery, petroleum products, food manufacturing, wood and wood products and footwear and wearing apparel (see Table 2-B).

On a month-on-month basis, volume of net sales continued to decline at 2.3 percent in August 2002. This was brought about by significant decreases of electrical machinery and basic metals sectors (see Table 2-B).

• Producers Price Index (PPI) rises

The Producers Price Index for total manufacturing posted a 4.0 percent year-on-year increase in August 2002. Double-digit increases were registered by the following sectors: publishing and printing (26.7%); beverage (13.6%) and footwear and wearing apparel (10.6%) (see Table 5).

On a month-on-month basis, PPI for total manufacturing slightly went up by 0.8 percent. These were brought about by observed increases in PPI of the following sectors: petroleum products; paper and paper products; miscellaneous manufactures; beverage; furniture and fixtures; electrical machinery; food manufacturing and chemical products (see Table 5).

• Capacity Utilization

For August 2002, average capacity utilization was estimated at 74.9 percent for total manufacturing. Sectors that reported more than 80% capacity utilization rate were the following: petroleum products, miscellaneous manufactures, paper and paper products, footwear and wearing apparel, rubber products and tobacco (see Table 6).

The proportion of responding establishments that operated at full capacity (90%-100%) in August 2002 was 20.4 percent. About 42.1 percent of the responding establishments operated at 70%-89% capacity and establishments operating below 70% capacity accounted for 37.5 percent.

DISTRIBUTION OF KEY MANUFACTURING ESTABLISHMENTS
BY CAPACITY UTILIZATION
TOTAL MANUFACTURING, AUGUST 2002
(In percent)

• Response Rate

In August 2002, the response rate is 86.2 percent which corresponds to the retrieval of 500 sample establishments� reports (see Table 7).

RESPONSE RATES FOR TOTAL MANUFACTURING
(In percent)

TABLE 1-A. VALUE OF PRODUCTION INDEX, JULY - AUGUST 2002
(1994 =100)

TABLE 1-A. VALUE OF PRODUCTION INDEX, JULY - AUGUST 2002(concluded)

Note: * - new sectors in the 1994-based series
Sectors are ranked according to their contribution to the overall 1994-based August 2002 growth rate.
Year-on-year growth rates are computed by dividing the current month index by previous year same month index less 1.
Month-on-month growth rates are computed by dividing the current month index by previous month index less 1.

TABLE 1-B. VOLUME OF PRODUCTION INDEX, JULY - AUGUST 2002
(1994 = 100)

TABLE 1-B. VOLUME OF PRODUCTION INDEX, JULY - AUGUST 2002(concluded)

Note: * - new sectors in the 1994-based series
Sectors are ranked according to their contribution to the overall 1994-based August 2002 growth rate.
Year-on-year growth rates are computed by dividing the current month index by previous year same month index less 1.
Month-on-month growth rates are computed by dividing the current month index by previous month index less 1.

TABLE 2-A. VALUE OF NET SALES, JULY - AUGUST 2002
(1994=100)

TABLE 2-A. VALUE OF NET SALES, JULY - AUGUST 2002(concluded)
(1994=100)

Note: * - new sectors in the 1994-based series
Sectors are ranked according to their contribution to the overall 1994-based August 2002 growth rate.
Year-on-year growth rates are computed by dividing the current month value of net sales by previous year same month value of net sales less 1.
Month-on-month growth rates are computed by dividing the current month value of net sales by previous month value of net sales less 1.

TABLE 2-B. VOLUME OF NET SALES, JULY - AUGUST 2002
(1994=100)

TABLE 2-B. VOLUME OF NET SALES, JULY - AUGUST 2002(concluded)
(1994=100)

Note: * - new sectors in the 1994-based series
Sectors are ranked according to their contribution to the overall 1994-based August 2002 growth rate.
Year-on-year growth rates are computed by dividing the current month volume of net sales by previous year same month volume of net sales less 1.
Month-on-month growth rates are computed by dividing the current month volume of net sales by previous month volume of net sales less 1.

Source: National Statistics Office
Manila, Philippines