r-revised

• Value of Production continues to grow

  Value of Production Index (VaPI) for the manufacturing industry went up by 6.3 percent in August 2006 compared with the year-ago figure, according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). Basic metals continued to lead the major sectors as it exhibited the highest growth of 36.5 percent. Seven other sectors that reported significant increments were the following: miscellaneous manufactures, beverages, food manufacturing, chemical products, electrical machinery, rubber products and fabricated metal products. Refer to Tables 1-A and 1.

  On a month-on-month basis, VaPI posted an improvement with an increase of 3.7 percent in August 2006. This was due to the double-digit increases of the two (2) major sectors, namely: chemical products and beverages. Refer to Tables 1-A and 1.

• Volume of Production Index (VoPI) declines at slower rate

  Volume of Production Index (VoPI) on a yearly basis recorded a 7.0 percent decline in August 2006 after shrinking by 10.6 percent (revised) during the previous month. Two-digit decreases were posted by the following major sectors: machinery excluding electrical, leather products, electrical machinery, textiles, tobacco, footwear and wearing apparel, petroleum products, non-metallic mineral products, and transport equipment. Refer to Tables 2 and 1-B.

  On a monthly basis, VoPI made a turnaround by posting a growth of 4.4 percent in August 2006. This was brought about by increases in thirteen major sectors led by chemical products. Refer to Tables 2 and 1-B.

  

• 

• Value of Net Sales sustains growth

  On a year-on-year basis, Value of Net Sales posted an increment of 4.4 percent in August 2006, mainly due to the 26.7 percent growth of basic metals. Two-digit growth were also observed in the following major sectors: petroleum products, beverages, miscellaneous manufactures, rubber products, electrical machinery and food manufacturing. Refer to Tables 2-A and 3.

  Value of Net Sales on a monthly basis slightly grew by 1.1 percent from the previous month�s (revised) decrease of 2.5 percent. This was brought about by the two-digit increases in sales value of the following major sectors: beverages, fabricated metal products and footwear and wearing apparel. Refer to Tables 2-A and 3.

• Volume of Net Sales continues to drop

  Volume of Net Sales on a year-on-year basis declined by 7.1 percent in August 2006. Significant reduction in sales volume was noted in machinery excluding electrical with 77.1 percent. This was followed by other major sectors that posted two-digit decreases, namely: electrical machinery, leather products, tobacco, textiles, publishing and printing, footwear and wearing apparel, transport equipment, non-metallic mineral products and wood and wood products. Refer to Tables 2-B and 4.

  On a month-on-month basis, Volume of Net Sales recovered with a growth of 2.1 percent in August 2006 compared to the previous month�s (revised) decline of 3.7 percent. Major sectors that made significant contributions to the increase were beverages, non-metallic mineral products and fabricated metal products. Refer to Tables 2-B and 4.

• Capacity Utilization

  Average capacity utilization in August 2006 for total manufacturing was estimated at 80.3 percent. Sectors that registered more than 80% capacity utilization rates were the following: machinery excluding electrical, electrical machinery, petroleum products, paper and paper products, miscellaneous manufactures, leather products, rubber products, basic metals, food manufacturing and chemical products. Refer to Table 6. .

  The proportion of establishments that operated at full capacity (90% to 100%) was 10.1 percent in August 2006. More than half or 58.2 percent of the establishments operated at 70% to 89% capacity and 31.7 percent of the establishments operated below 70% capacity.

  Distribution of Key Manufacturing Establishments by Capacity Utilization
  Total Manufacturing, July 2006
  (In percent)

  Capacity Utilization	Percent Share
  Below 50 percent	3.3
  50 percent - 59 percent	8.2
  60 percent - 69 percent	20.2
  70 percent - 79 percent	20.2
  80 percent - 89 percent	38.0
  90 percent - 100 percent	10.1

• Response Rate

  The response rates for the August 2006 MISSI and PPS are 90.0 percent and 96.6 percent, respectively. efer to Tables 7 and 8.

  Response Rates for Total Manufacturing
  (In percent)

  	August 2006	July 2006            (revised)
  MISSI	90.0	97.1r
  PPS	96.6r	98.5r

  
                         r-revised
• Technical Notes

  Starting 2006, weights for the Producer Price Index (PPI) are based from the results of the 2003 Annual Survey of Philippine Business and Industry (ASPBI) for manufacturing establishments with average total employment (ATE) of 20 and over.

  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

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  TABLE 1-A. VALUE OF PRODUCTION INDEX, July 2006 - August 2006
  (1994 =100)

  Gainers	Year-on-Year Growth (percent)
  	August 2006	July 2006 (revised)
  Food Manufacturing	17.3	12.9
  Basic Metals	36.5	70.6
  Chemical Products	16.0	-3.5
  Electrical Machinery	14.7	9.1
  Beverages	18.9	-7.1
  Miscellaneous Manufactures	22.8	11.4
  Fabricated Metal Products*	12.8	12.8
  Rubber Products	14.4	5.7
  Furniture and Fixtures	9.3	2.8
  Wood and Wood Products	1.2	-19.9
  Losers	Year-on-Year Growth (percent)
  	August 2006	July 2006 (revised)
  Petroleum Products	-7.5	-5.3
  Textiles	-26.5	-19.6
  Tobacco	-21.8	-20.3
  Machinery Excluding Electrical*	-34.0	-36.8
  Transport Equipment	-7.5	-9.0
  Footwear and Wearing Apparel*	-6.9	17.3
  Non-Metallic Mineral Products	-5.6	-9.1
  Publishing and Printing*	-5.9	6.0
  Paper and Paper Products	-3.1	6.0
  Leather Products*	-31.4	13.6

  TABLE 1-A. VALUE OF PRODUCTION INDEX, July 2006 - August 2006
  (concluded)
  (1994=100)

  Gainers	Month-on-Month Growth (percent)
  	August 2006	July 2006 (revised)
  Chemical Products	19.0	5.1
  Food Manufacturing	6.4	-0.2
  Beverages	14.3	-14.2
  Transport Equipment	4.3	-0.9
  Non-Metallic Mineral Products	5.8	-16.7
  Fabricated Metal Products*	5.9	3.5
  Wood and Wood Products	7.9	7.2
  Miscellaneous Manufactures	3.8	-2.2
  Rubber Products	4.1	15.6
  Textiles	0.7	-27.9
  Electrical Machinery	0.1	9.5
  Losers	Month-on-Month Growth (percent)
  	August 2006	July 2006 (revised)
  Basic Metals	-14.2	13.7
  Footwear and Wearing Apparel*	-8.6	5.8
  Tobacco	-7.5	4.8
  Paper and Paper Products	-6.0	-4.8
  Machinery Excluding Electrical*	-3.2	7.4
  Publishing and Printing*	-2.7	7.2
  Leather Products*	-21.9	24.0
  Petroleum Products	-0.2	-15.7
  Furniture and Fixtures	-0.4	-7.4

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

  Sectors are ranked according to their contribution to the overall 1994-based August 2006 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 2006 - August 2006
  (1994 = 100)

  Gainers	Year-on-Year Growth (percent)
  	August 2006	July 2006 (revised)
  Food Manufacturing	11.6	8.2
  Basic Metals	36.0	68.5
  Chemical Products	13.7	-3.8
  Beverages	14.9	-10.2
  Miscellaneous Manufactures	28.6	14.1
  Furniture and Fixtures	23.8	15.2
  Fabricated Metal Products*	3.5	1.2
  Publishing and Printing*	3.8	8.6
  Losers	Year-on-Year Growth (percent)
  	August 2006	July 2006 (revised)
  Electrical Machinery	-36.5	-40.8
  Petroleum Products	-17.9	-22.9
  Footwear and Wearing Apparel*	-25.0	-3.9
  Textiles	-28.7	-21.7
  Tobacco	-26.3	-24.9
  Transport Equipment	-13.6	-15.7
  Machinery Excluding Electrical*	-48.0	-51.1
  Non-Metallic Mineral Products	-15.2	-21.0
  Paper and Paper Products	-7.3	2.5
  Wood and Wood Products	-6.1	-25.7
  Leather Products*	-45.2	-6.9
  Rubber Products	-0.8	-8.3

  TABLE 1-B. VOLUME OF PRODUCTION INDEX, July 2006 - August 2006
  (concluded)
  (1994=100)

  Gainers	Month-on-Month Growth (percent)
  	August 2006	July 2006 (revised)
  Chemical Products	17.4	6.6
  Food Manufacturing	6.1	-0.7
  Beverages	14.3	-16.2
  Petroleum Products	5.8	-21.3
  Electrical Machinery	2.8	7.6
  Non-Metallic Mineral Products	7.4	-17.1
  Transport Equipments	4.3	-1.7
  Fabricated Metal Products*	5.9	3.9
  Wood and Wood Products	7.7	7.0
  Miscellaneous Manufactures	5.0	-1.2
  Furniture and Fixtures	4.9	-6.3
  Rubber Products	4.1	15.6
  Textiles	0.6	-27.9
  Losers	Month-on-Month Growth (percent)
  	August 2006	July 2006 (revised)
  Basic Metals	-14.1	15.0
  Footwear and Wearing Apparel*	-9.3	7.5
  Tobacco	-7.5	4.8
  Paper and Paper Products	-5.7	-7.1
  Machinery Excluding Electrical*	-2.8	6.5
  Publishing and Printing*	-2.7	7.2
  Leather Products*	-23.9	24.0

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

  Sectors are ranked according to their contribution to the overall 1994-based August 2006 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 2006 - August 2006
  (1994=100)

  Gainers	Year-on-Year Growth (percent)
  	August 2006	July 2006 (revised)
  Petroleum Products	15.7	18.2
  Food Manufacturing	10.1	4.9
  Basic Metals	26.7	57.9
  Electrical Machinery	11.7	1.8
  Beverages	15.6	-0.3
  Miscellaneous Manufactures	14.1	8.0
  Rubber Products	14.1	19.4
  Fabricated Metal Products*	3.7	8.0
  Footwear and Wearing Apparel*	1.2	11.1
  Losers	Year-on-Year Growth (percent)
  	August 2006	July 2006 (revised)
  Machinery Excluding Electrical*	-70.9	-71.3
  Chemical Products	-5.5	2.6
  Textiles	-19.5	-4.9
  Tobacco	-18.7	-6.0
  Transport Equipment	-8.4	-2.5
  Publishing and Printing*	-27.1	-12.6
  Non-Metallic Mineral Products	-3.6	-13.2
  Furniture and Fixtures	-15.7	-13.9
  Paper and Paper Products	-4.6	1.9
  Wood and Wood Products	-3.7	-13.4
  Leather Products*	-21.9	3.0

  TABLE 2-A. VALUE OF NET SALES, July 2006 - August 2006 (concluded)
  (1994=100)

  Gainers	Month-on-Month Growth (percent)
  	August 2006	July 2006 (revised)
  Food Manufacturing	6.0	-7.6
  Beverages	12.2	-20.1
  Electrical Machinery	3.9	-6.1
  Footwear and Wearing Apparel*	10.2	-2.0
  Non-Metallic Mineral Products	9.3	25.9
  Fabricated Metal Products*	10.6	1.9
  Textiles	5.0	-14.7
  Transport Equipment	2.4	4.7
  Wood and Wood Products	0.7	14.9
  Losers	Month-on-Month Growth (percent)
  	August 2006	July 2006 (revised)
  Chemical Products	-8.5	2.4
  Basic Metals	-14.3	9.9
  Petroleum Products	-2.3	5.8
  Paper and Paper Products	-3.9	-7.3
  Machinery Excluding Electrical*	-5.2	11.2
  Tobacco	-2.1	2.0
  Miscellaneous Manufactures	-5.3	-2.7
  Leather Products*	-21.1	12.3
  Rubber Products	-4.2	9.1
  Publishing and Printing*	-1.0	7.9
  Furniture and Fixtures	-1.9	7.9

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

  Sectors are ranked according to their contribution to the overall 1994-based August 2006 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 2006 - August 2006
  (1994=100)

  Gainers	Year-on-Year Growth (percent)
  	August 2006	July 2006 (revised)
  Basic Metals	26.3	56.0
  Food Manufacturing	4.7	0.6
  Beverages	11.6	-3.7
  Petroleum Products	2.6	-3.8
  Miscellaneous Manufactures	19.6	10.7
  Losers	Year-on-Year Growth (percent)
  	August 2006	July 2006 (revised)
  Electrical Machinery	-38.1	-44.7
  Machinery Excluding Electrical*	-77.1	-77.8
  Chemical Products	-7.3	2.3
  Transport Equipment	-14.4	-9.7
  Footwear and Wearing Apparel*	-18.5	-8.9
  Tobacco	-23.4	-11.4
  Textiles	-22.0	-7.3
  Non-Metallic Mineral Products	-13.3	-24.6
  Publishing and Printing*	-19.6	10.4
  Paper and Paper Products	-8.8	-1.5
  Wood and Wood Products	-10.8	-19.7
  Fabricated Metal Products*	-4.8	-3.1
  Leather Products*	-37.6	-15.6
  Furniture and Fixtures	-4.5	-3.6
  Rubber Products	-1.1	3.5

  TABLE 2-B. VOLUME OF NET SALES, July 2006 - August 2006 (concluded)
  (1994=100)

  Gainers	Month-on-Month Growth (percent)
  	August 2006	July 2006 (revised)
  Food Manufacturing	5.7	-8.1
  Electrical Machinery	6.6	-7.8
  Beverages	12.2	-21.9
  Petroleum Products	3.6	-1.2
  Footwear and Wearing Apparel*	9.3	-0.4
  Non-Metallic Mineral Products	11.0	-26.3
  Fabricated Metal Products*	10.6	2.3
  Textiles	5.0	-14.7
  Transport Equipment	2.4	4.0
  Furniture and Fixtures	3.4	-6.8
  Wood and Wood Products	0.6	14.7
  Losers	Month-on-Month Growth (percent)
  	August 2006	July 2006 (revised)
  Chemical Products	-9.7	3.9
  Basic Metals	-14.2	11.1
  Paper and Paper Products	-3.6	-9.5
  Tobacco	-2.1	2.0
  Machinery Excluding Electrical*	-4.8	10.3
  Miscellaneous Manufactures	-4.2	-1.8
  Leather Products*	-23.2	12.3
  Rubber Products	-4.2	9.1
  Publishing and Printing*	-1.0	-7.9

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

  Sectors are ranked according to their contribution to the overall 1994-based August 2006 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.

   

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  Source:   National Statistics Office
                   Manila, Philippines