r-revised

·  Value of Production falls in August 2007

Value of Production Index (VaPI) for the manufacturing industry slumped by 3.6 percent in August 2007 after registering a year-on-year growth of 2.1 percent in the previous month, according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). This was brought about by the slacked performance in ten (10) major sectors, with two-digit decreases observed in the following: tobacco, electrical machinery, rubber products, textiles, footwear and wearing apparel, machinery excluding electrical, basic metals and chemical products. Refer to Tables 1-A and 1 .

On a monthly basis, VaPI also went down by 1.2 percent in August 2007 from its previous month's (revised) growth of 2.8 percent. Though nine (9) major sectors posted increases, this was offset by the decreases in 11 major sectors with two-digit decreases observed in three (3) major sectors. Refer to Tables 1-A and 1.

·  Volume of Production Index also tumbles

Volume of Production Index (VoPI) registered a year-on-year decline of 4.7 percent in August 2007 compared to its previous month's (revised) increase of 1.5 percent. Significant reduction in the factory output were noted in the following major sectors: tobacco, basic metals, electrical machinery, textiles, footwear and wearing apparel, rubber products, chemical products and machinery excluding electrical. Refer to Tables 2 and 1-B.

VoPI, on a month-on month basis, slightly fell by 0.8 percent in August 2007. The increases in production volume reported by 12 major sectors were offset by the decreases reported by the eight (8) major sectors, which resulted to the sluggish output performance in the manufacturing sector. Refer to Tables 2 and 1-B.

·  Value of Net Sales maintains positive trend in August 2007

On a yearly basis, Value of Net Sales increased at a slower rate of 1.6 percent in August 2007. Eleven (11) major sectors reported sales growth, with significant two-digit increases reported by the following: transport equipment, publishing and printing, beverages, chemical products, tobacco, non-metallic mineral products, wood and wood products and furniture and fixtures. Refer to Tables 2-A and 3.

On a month-on-month basis, Value of Net Sales dipped further by 1.3 percent in August 2007. Fourteen (14) of the 20 major sectors posted decline in sales value, led by rubber products with two-digit decrease of 13.5 percent. Refer to Tables 2-A and 3.

·  Volume of Net Sales slips

Volume of Net Sales dropped by 0.3 percent in August 2007 from an increase (revised) of 3.4 percent in July 2007. This was due to the decreases reported by nine (9) major sectors, with two-digit decreases reported by the following: leather products, textiles, basic metals, machinery excluding electrical, footwear and wearing apparel and electrical machinery. Refer to Tables 2-B and 4.

On a month-on-month comparison, Volume of Net Sales slipped by 0.8 percent in August 2007. Fourteen (14) of the 20 major sectors registered decreases in sales volume, with two-digit decrease reported by the rubber products at 13.3 percent. Refer to Tables 2-B and 4.

·  Capacity Utilization

Average capacity utilization in August 2007 for total manufacturing was estimated at 80.4 percent. Major sectors that registered more than 80% capacity utilization rates were the following: machinery excluding electrical, miscellaneous manufactures, basic metals, petroleum products, leather products, electrical machinery, rubber products, paper and paper products, chemical products and food manufacturing. Refer to Table 6.

The proportion of establishments that operated at full capacity (90% to 100%) was 10.8 percent in August 2007. More than half or 56.3 percent of the establishments operated at 70% to 89% capacity while 32.9 percent of the establishments operated below 70% capacity.

·  Response Rates

The response rates for the August 2007 MISSI and PPS are 87.9 percent and 92.1 percent, respectively. Refer to Tables 7 and 8.

                       r-revised

·  Technical Notes

For the 2007 monthly issues, the 2000 based series of MISSI indices and PPI are simultaneously released with the 1994 based indicators. The 2000 based series for 2001 to 2006 were earlier made available in separate Special Release.

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.

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

            b/ - Less than 0.1 percent decrease

Sectors are ranked according to their contribution to the overall 1994-based August 2007 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.

Notes * - new sectors in the 1994-based series

Sectors are ranked according to their contribution to the overall 1994-based August 2007 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.

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

Sectors are ranked according to their contribution to the overall 1994-based August 2007 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.

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

Sectors are ranked according to their contribution to the overall 1994-based August 2007 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