r -revised

·  Value of Production Index (VaPI) increases at slower rate

The Value of Production Index (VaPI) for the manufacturing industry on a year-on-year basis went up by 3.4 percent in August 2004, according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). The sectors that posted double-digit increases were the following: rubber products, transport equipment, furniture and fixtures, chemical products, beverage, food manufacturing and non-metallic mineral products. Refer to Tables 1-A and 1.

On the other hand, VaPI on a month-on-month basis dropped by 5.2 percent in August 2004. Sectors that significantly contributed to the decrease were non-metallic mineral products, tobacco, footwear and wearing apparel, petroleum products, fabricated metal products, leather products and beverage. Refer to Tables 1-A and 1.

·  Volume of Production Index (VoPI) decreases further

Volume of Production Index (VoPI) plunged by 5.0 percent in August 2004 compared to a year ago figure. Significant decreases were noted in the following sectors: leather products, tobacco, footwear and wearing apparel, petroleum products and basic metals.Refer to Tables 1-B and 2.

Similarly, VoPI on a month-on-month basis dropped by 5.4 percent in August 2004. Sectors that exhibited double-digit decreases were the following: non-metallic mineral products, tobacco, footwear and wearing apparel, petroleum products, fabricated metal products, leather products and beverage. Refer to Tables 1-B and 2.

·  Value of Net Sales continues positive trend

On a year-on-year basis, Value of Net Sales increased by 4.0 percent in August 2004, lower compared to the previous months (revised) growth rate of 10.5 percent. Seven (7) sectors that posted increases were as follows: leather products, basic metals, rubber products, transport equipment, paper and paper products, chemical products, and textile. Refer to Tables 2-A and 3.

On a month-on-month basis, Value of Net Sales slid by 2.7 percent in August 2004. Sectors with double-digit decreases were tobacco, fabricated metal products, furniture and fixtures, and electrical machinery. Refer to Tables 2-A and 3.

·  Volume of Net Sales continues to decline

Volume of Net Sales, on a year-on-year basis, dropped by 8.7 percent in August 2004. Sectors that registered double-digit decreases were the following: tobacco, footwear and wearing apparel, electrical machinery, publishing and printing, machinery excluding electrical and petroleum products. Refer to Tables 2-B and 4.

Likewise, Volume of Net Sales on a month-on-month basis decreased by 3.2 percent in August 2004. This was due to the double-digit decreases observed in the following sectors: tobacco, fabricated metal products, furniture and fixtures and electrical machinery. Refer to Tables 2-B and 4.

·  Producers Price Index (PPI) continues its uptrend

The Producers Price Index (PPI) for total manufacturing on a year-on-year basis increased by 8.9 percent in August 2004. Sectors that significantly contributed to the increment were the following: footwear and wearing apparel, basic metals, petroleum products, tobacco, food manufacturing, non-metallic mineral products and textile. Refer to Table 5..

Moreover, PPI on a month-on-month comparison slightly went up by 0.5 percent in August 2004. The sectors that posted significant increases were the following: chemical products, transport equipment, fabricated metal products, paper and paper products, footwear and wearing apparel, petroleum products and basic metals. Refer to Table 5.

·  Capacity Utilization

Average capacity utilization in August 2004 for total manufacturing was estimated at 79.4 percent. Sectors that posted more than 80% capacity utilization rates were the following: machinery excluding electrical, miscellaneous manufactures, paper and paper products, leather products, petroleum products, rubber products, electrical machinery, basic metals and food manufacturing. Refer to Table 6..

The proportion of establishments that operated at full capacity (90%-100%) in August 2004 was 15.1 percent. More than half or 51.8 percent of the establishments operated at 70%-89% capacity and 33.1 percent of the establishments operated below 70% capacity.

Distribution of Key Manufacturing Establishments by Capacity Utilization
Total Manufacturing, August 2004
(In percent)

·  Response Rate

The response rate for August 2004 is 91.8 percent, which corresponds to the retrieval of 494 sample establishments reports. Refer to Table 7.

Response Rates for Total Manufacturing
(In percent)

·  Technical Notes

Starting 2004, weights for the Producers Price Index (PPI) are based from the results of the 2000 Census of Philippine Business and Industry (CPBI) for establishments with average total employment (ATE) of 20 and over. Reference year for the 2000 CPBI is 1999. (Refer to Press Release on Revision of 2004 PPI weights).

Data of non-responding sample establishments are estimated based on previous records and other available sources. Revisions to the preliminary estimates are done upon receipt of actual reports of late respondents.
 

TABLE 1-A. VALUE OF PRODUCTION INDEX, July-August 2004
(1994 =100)

TABLE 1-A. VALUE OF PRODUCTION INDEX, July - August 2004
(concluded)
(1994=100)

Note: * - new sectors in the 1994-based series

Sectors are ranked according to their contribution to the overall 1994-based August 2004 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 2004
(1994 = 100)

TABLE 1-B. VOLUME OF PRODUCTION INDEX, July - August 2004
(concluded)
(1994=100)

Note: * - new sectors in the 1994-based series

Sectors are ranked according to their contribution to the overall 1994-based August 2004 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 2004
(1994=100)

TABLE 2-A. VALUE OF NET SALES, July - August 2004 (concluded)
(1994=100)

Note: * - new sectors in the 1994-based series

Sectors are ranked according to their contribution to the overall 1994-based August 2004 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 2004
(1994=100)

TABLE 2-B. VOLUME OF NET SALES, July - August 2004 (concluded)
(1994=100)

Note: * - new sectors in the 1994-based series

Sectors are ranked according to their contribution to the overall 1994-based August 2004 growth rate.

Year-on-year growth ratesare 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.