r -revised

• Value of Production Index sustains double-digit growth in August 2005
  

  Value of Production Index (VaPI) for the manufacturing industry grew by 20.4 percent in August 2005 compared with a year-ago figure, according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). Sectors observed to have boosted production were the following: petroleum products, chemical products, furniture and fixtures, textiles, non-metallic mineral products, tobacco, food manufacturing, fabricated metal products and miscellaneous manufactures.Refer to Tables 1-A and 1.

  On a monthly basis, VaPI increased at a slower rate of 2.1 percent in August 2005 primarily due to the improved performances of publishing and printing and textiles sectors.Refer to Tables 1-A and 1.

• Volume of Production Index (VoPI) posts highest growth in eight months
  

  In August 2005, Volume of Production Index (VoPI) on a year-on-year basis climbed by 7.3 percent. Thirteen (13) of the 20 major sectors reported increases in factory output, with double-digit growth observed in the following: chemical products, furniture and fixtures, textiles, fabricated metal products, petroleum products, food manufacturing, non-metallic mineral products, footwear and wearing apparel and tobacco. Refer to Tables 2 and 1-B.

  On a month-on-month comparison, VoPI also reflected an increment of 2.1 percent in August 2005. Double-digit increments were reported in two (2) sectors, namely: textiles and publishing and printing. Refer to Tables 2 and 1-B.

• Value of Net Sales continues to rise
  

  Value of Net Sales in August 2005 continued to pick up at 13.9 percent on a year-on-year basis. Thirteen (13) sectors that reported significant expansion in sales were the following: tobacco, furniture and fixtures, publishing and printing, fabricated metal products, petroleum products, non-metallic mineral products, basic metals, leather products, chemical products, rubber products, food manufacturing, electrical machinery and footwear and wearing apparel. Refer to Tables 2-A and 3.

  On a month-on-month basis, Value of Net Sales recovered with a 2.8 percent growth in August 2005 from its (revised) 1.7 percent drop in July 2005. Significant increases were noted in the following sectors: textiles, fabricated metal products, footwear and wearing apparel and tobacco. Refer to Tables 2-A and 3.

• Volume of Net Sales jumps
  

  On a yearly basis, Net Sales Volume stepped up by 3.8 percent in August 2005 compared to the previous month's (revised) decrease of 3.5 percent. Major sectors that contributed to the growth were furniture and fixtures, tobacco, fabricated metal products, publishing and printing, footwear and wearing apparel, non-metallic metal products, rubber products and transport equipment. Refer to Tables 2-B and 4.

  On a monthly basis, Volume of Net Sales rose to 2.4 percent in August 2005. Sectors that reported large demands were textiles, fabricated metal products, footwear and wearing apparel and tobacco. Refer to Tables 2-B and 4.

• Producer's Price Index (PPI) continues its uptrend

Producer's Price Index (PPI) for manufacturing in August 2005 accelerated by 12.2 percent compared to its year-ago figure. This was brought about by the two-digit price increases in the following sectors: petroleum products, machinery excluding electrical, electrical machinery, basic metals and publishing and printing. Refer to Table 5.

PPI on a monthly comparison managed to grow at 0.1 percent in August 2005. Monthly price increases were noted in the following sectors: petroleum products, non-metallic mineral products, transport equipment, basic metals, machinery excluding electrical and chemical products. Refer to Table 5.

•  
• Capacity Utilization
  

  Average capacity utilization in August 2005 for total manufacturing was estimated at 80.3 percent. Sectors that registered more than 80% capacity utilization rates were the following: machinery excluding electrical, petroleum products, paper and paper products, electrical machinery, leather products, miscellaneous manufactures, basic metals, rubber products, chemical products, food manufacturing and textiles. Refer to Table 6..

  The proportion of establishments that operated at full capacity (90%-100%) was 12.3 percent in August 2005. More than half or 54.2 percent of the establishments operated at 70%-89% capacity and 33.5 percent of the establishments operated below 70% capacity.

  Distribution of Key Manufacturing Establishments by Capacity Utilization
  Total Manufacturing, AUGUST 2005
  (In percent)

  Capacity Utilization	Percent Share
  Below 50 percent	4.9
  50 percent - 59 percent	9.7
  60 percent - 69 percent	18.9
  70 percent - 79 percent	18.7
  80 percent - 89 percent	35.5
  90 percent - 100 percent	12.3

• Response Rate
  

  The response rate for August 2005 is 89.4 percent, which corresponds to the retrieval of 466 sample establishments' reports. Refer to Table 7.

  Response Rates for Total Manufacturing
  (In percent)

  August 2005	July 2005           (revised)
  89.4	96.2

• Technical Notes
  

  Starting 2004, weights for the Producer's 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.
   

  (Sgd.) CARMELITA N. ERICTA                                                                                                     Administrator

  ---

  TABLE 1-A. VALUE OF PRODUCTION INDEX, July 2005 - August 2005
  (1994 =100)

  Gainers	Year-on-Year Growth (percent)
  	August 2005	July 2005 (revised)
  Petroleum Products	56.6	31.7
  Chemical Products	36.2	26.3
  Food Manufacturing	16.3	5.4
  Electrical Machinery	9.2	13.1
  Textiles	22.0	15.0
  Non-Metallic Mineral Products	20.1	-13.9
  Tobacco	19.4	1.3
  Basic Metals	8.1	2.4
  Transport Equipment	6.8	5.2
  Fabricated Metal Products*	15.4	-4.7
  Paper and Paper Products	8.7	12.4
  Furniture and Fixtures	25.2	32.9
  Miscellaneous Manufactures	12.1	12.9
  Footwear and Wearing Apparel*	1.6	-19.5
  Beverage	1.1	1.0
  Rubber Products	5.2	10.7
  Losers	Year-on-Year Growth (percent)
  	August 2005	July 2005 (revised)
  Wood and Wood Products	-53.3	-42.0
  Machinery Excluding Electrical*	-28.1	-16.3
  Publishing and Printing*	-3.9	-2.8
  Leather Products*	-2.0	8.6

  TABLE 1-A. VALUE OF PRODUCTION INDEX, July 2005 - August 2005
  (concluded)
  (1994=100)

  Gainers	Month-on-Month Growth (percent)
  	August 2005	July 2005 (revised)
  Food Manufacturing	5.3	-1.3
  Chemical Products	7.0	4.1
  Footwear and Wearing Apparel*	9.6	-21.0
  Basic Metals	6.8	2.5
  Textiles	10.4	6.7
  Petroleum Products	2.1	18.1
  Transport Equipment	2.6	-9.8
  Fabricated Metal Products*	7.3	-0.9
  Publishing and Printing*	10.5	-0.4
  Paper and Paper Products	3.9	-1.3
  Non-Metallic Mineral Products	1.2	-2.3
  Losers	Month-on-Month Growth (percent)
  	August 2005	July 2005 (revised)
  Beverage	-10.6	-22.4
  Electrical Machinery	-4.6	4.6
  Wood and Wood Products	-14.6	-10.0
  Machinery Excluding Electrical*	-7.2	13.5
  Furniture and Fixtures	-10.3	-3.7
  Miscellaneous Manufactures	-3.7	-2.5
  Tobacco	-1.3	-15.0
  Leather Products*	-20.8	67.7
  Rubber Products	-3.7	5.2

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

  Sectors are ranked according to their contribution to the overall 1994-based August 2005 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 2005 - August 2005
  (1994 = 100)

  Gainers	Year-on-Year Growth (percent)
  	August 2005	July 2005 (revised)
  Chemical Products	27.0	12.9
  Petroleum Products	18.6	-0.8
  Food Manufacturing	12.0	1.0
  Textiles	19.3	15.8
  Footwear and Wearing Apparel*	10.9	-12.6
  Transport Equipment	7.6	4.6
  Non-Metallic Mineral Products	10.9	-17.9
  Fabricated Metal Products*	18.9	-3.2
  Tobacco	10.9	-6.0
  Paper and Paper Products	9.1	11.1
  Furniture and Fixtures	21.9	31.8
  Miscellaneous Manufactures	7.4	7.8
  Rubber Products	4.9	10.3
  Beverage	0.0	-0.1
  Losers	Year-on-Year Growth (percent)
  	August 2005	July 2005 (revised)
  Electrical Machinery	-10.6	-3.7
  Machinery Excluding Electrical*	-45.1	-35.7
  Wood and Wood Products	-55.8	-44.8
  Basic Metals	-7.1	-11.6
  Publishing and Printing*	-14.9	-13.9
  Leather Products*	-9.2	0.6

  TABLE 1-B. VOLUME OF PRODUCTION INDEX, July 2005 - August 2005
  (concluded)
  (1994=100)

  Gainers	Month-on-Month Growth (percent)
  	August 2005	July 2005 (revised)
  Food Manufacturing	5.6	-1.4
  Chemical Products	6.9	6.2
  Footwear and Wearing Apparel*	9.6	-21.8
  Basic Metals	6.0	2.6
  Textiles	11.0	6.6
  Fabricated Metal Products*	7.3	-0.9
  Publishing and Printing*	10.5	-0.4
  Transport Equipments	1.8	-9.8
  Paper and Paper Products	4.7	-0.9
  Losers	Month-on-Month Growth (percent)
  	August 2005	July 2005 (revised)
  Beverage	-10.6	-21.6
  Electrical Machinery	-4.1	3.0
  Wood and Wood Products	-14.6	-9.9
  Machinery Excluding Electrical*	-7.7	11.0
  Petroleum Products	-0.7	13.9
  Furniture and Fixtures	-6.5	-4.5
  Tobacco	-1.3	-15.0
  Non-Metallic Mineral Products	-1.0	-3.9
  Leather Products*	-20.8	67.7
  Miscellaneous Manufactures	-2.4	-3.5
  Rubber Products	-3.7	5.2

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

  Sectors are ranked according to their contribution to the overall 1994-based August 2005 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 2005 - August 2005
  (1994=100)

  Gainers	Year-on-Year Growth (percent)
  	August 2005	July 2005 (revised)
  Petroleum Products	23.9	28.6
  Food Manufacturing	11.4	7.2
  Chemical Products	13.6	7.1
  Tobacco	43.5	2.9
  Electrical Machinery	11.1	5.0
  Basic Metals	20.4	12.6
  Non-Metallic Mineral Products	21.7	14.0
  Transport Equipment	9.9	-3.3
  Fabricated Metal Products*	28.5	-3.1
  Publishing and Printing*	38.7	14.0
  Footwear and Wearing Apparel*	10.6	-9.1
  Furniture and Fixtures	38.8	22.7
  Beverage	3.2	-2.2
  Paper and Paper Products	5.4	5.6
  Rubber Products	11.8	4.9
  Textiles	2.1	-16.5
  Leather Products*	14.8	26.9
  Losers	Year-on-Year Growth (percent)
  	August 2005	July 2005 (revised)
  Wood and Wood Products	-53.7	-44.5
  Machinery Excluding Electrical*	-24.2	-15.0
  Miscellaneous Manufactures	-0.7	-3.8

  TABLE 2-A. VALUE OF NET SALES, July 2005 - August 2005 (concluded)
  (1994=100)

  Gainers	Month-on-Month Growth (percent)
  	August 2005	July 2005 (revised)
  Textiles	25.4	-9.1
  Chemical Products	5.4	6.2
  Footwear and Wearing Apparel*	13.3	-23.9
  Transport Equipment	9.0	-17.2
  Tobacco	11.0	-3.7
  Fabricated Metal Products*	16.7	0.1
  Basic Metals	4.1	4.5
  Food Manufacturing	1.3	4.2
  Publishing and Printing*	7.9	5.0
  Paper and Paper Products	2.9	-5.9
  Rubber Products	0.6	-0.4
  Losers	Month-on-Month Growth (percent)
  	August 2005	July 2005 (revised)
  Electrical Machinery	-5.1	9.1
  Beverage	-3.3	-21.4
  Wood and Wood Products	-9.8	5.7
  Machinery Excluding Electrical*	-6.3	18.7
  Miscellaneous Manufactures	-6.4	-12.3
  Non-Metallic Mineral Products	-0.9	-4.3
  Leather Products*	-18.3	54.4
  Petroleum Products	-0.2	-7.2
  Furniture and Fixtures	-0.5	4.3

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

  Sectors are ranked according to their contribution to the overall 1994-based August 2005 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 2005 - August 2005
  (1994=100)

  Gainers	Year-on-Year Growth (percent)
  	August 2005	July 2005 (revised)
  Food Manufacturing	7.3	2.8
  Tobacco	33.2	-4.5
  Footwear and Wearing Apparel*	20.6	-1.4
  Chemical Products	6.0	-4.2
  Transport Equipment	10.6	-3.9
  Fabricated Metal Products*	32.4	-1.7
  Non-Metallic Mineral Products	12.4	8.7
  Publishing and Printing*	22.9	0.9
  Furniture and Fixtures	35.1	21.6
  Basic Metals	3.5	-2.9
  Paper and Paper Products	5.8	3.9
  Beverage	2.0	-3.3
  Rubber Products	11.5	4.5
  Leather Products*	6.4	17.5
  Losers	Year-on-Year Growth (percent)
  	August 2005	July 2005 (revised)
  Electrical Machinery	-9.1	-10.6
  Petroleum Products	-6.2	-3.1
  Wood and Wood Products	-56.1	-47.2
  Machinery Excluding Electrical*	-42.0	-34.8
  Miscellaneous Manufactures	-4.8	-8.1
  Textiles	-0.3	-16.0

  TABLE 2-B. VOLUME OF NET SALES, July 2005 - August 2005 (concluded)
  (1994=100)

  Gainers	Month-on-Month Growth (percent)
  	August 2005	July 2005 (revised)
  Textiles	26.0	-9.2
  Chemical Products	5.4	8.3
  Footwear and Wearing Apparel*	13.3	-24.7
  Transport Equipment	8.1	-17.2
  Tobacco	11.0	-3.7
  Fabricated Metal Products*	16.7	0.1
  Food Manufacturing	1.5	4.0
  Basic Metals	3.3	4.7
  Publishing and Printing*	7.9	5.0
  Paper and Paper Products	4.3	-6.0
  Furniture and Fixtures	3.7	3.5
  Rubber Products	0.6	-0.4
  Losers	Month-on-Month Growth (percent)
  	August 2005	July 2005 (revised)
  Electrical Machinery	-4.6	7.4
  Petroleum Products	-2.9	-10.4
  Beverage	-3.3	-20.4
  Non-Metallic Mineral Products	-3.1	-5.9
  Wood and Wood Products	-9.8	6.0
  Machinery Excluding Electrical*	-6.8	16.1
  Miscellaneous Manufactures	-5.1	-13.2
  Leather Products*	-18.3	54.4

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

  Sectors are ranked according to their contribution to the overall 1994-based August 2005 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