r- revised

·  Value of Production retain its negative rate

In August, Value of Production Index (VaPI) of the manufacturing industry dropped at a slower rate of negative 15.2 percent compared with the previous month's decline of 18.7 percent, according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). The contraction was attributed to the decreases reported by 13 major sectors, with two-digit decreases exhibited by the following: petroleum products, furniture and fixtures, leather products, beverages, basic metals, electrical machinery, footwear and wearing apparel, paper and paper products,and wood and wood products. Refer to Tables 1-A and 1.

On a month-on-month basis, however, VaPI slightly grew by 0.4 percent in August 2009. This was due to the increases by eight (8) major sectors, offsetting the decreases reported by 12 major sectors. Refer to Tables 1-A and 1.

·  Volume of Production also contracts in August 2009

Volume of Production Index (VoPI) posted an average annual drop of 13.3 percent in August 2009. Eight (8) major sectors accounted for the significant decreases in production output, namely: petroleum products, leather products, footwear and wearing apparel, beverages, wood and wood products, electrical machinery, furniture and fixtures, and machinery except electrical. Refer to Tables 1-B and 2.

VoPI, on a monthly comparison, slipped to 1.1 percent in August 2009. The major sectors that showed two-digit decreases in production volume were petroleum products, and tobacco products. Refer to Tables 1-B and 2.

·  Value of Net Sales continue its downtrend

On a yearly comparison, Value of Net Sales Index (VaNSI) continued to decline at a slower rate as it posted a decrease of 12.6 percent in August 2009. This was brought about by weak sales performances observed in 16 major sectors, with two-digit decreases observed in the following: petroleum products, textiles, furniture and fixtures, leather products, paper and paper products, beverages, fabricated metal products, electrical machinery, and basic metals. Refer to Tables 2-A and 3.

VaNSI likewise posted a month-on-month drop of 1.2 percent in August 2009. This was due to the decreases observed in 11 major sectors compared to only nine (9) major sectors that registered increases in sales value. Refer to Tables 2-A and 3.

·  Volume of Net Sales also maintain its downtrend

Volume of Net Sales Index (VoNSI) for August 2009 slumped by 10.6 percent lower compared to 15.5 percent decline recorded in the previous month. Fourteen major sectors contributed to the decrease in sales volume with significant reduction noted in the following: textiles, leather products, petroleum products, wood and wood products, beverages, chemical products, footwear and wearing apparel, paper and paper products, machinery except electrical, and electrical machinery.Refer to Tables 2-B and 4.

On a month-on-month basis, VoNSI slightly fell by 2.7 percent in August 2009 from its previous month's 0.2 percent growth. This was due to the decreases observed in 11 major sectors compared to only nine (9) major sectors that registered increases in sales volume. Refer to Tables 2-B and 4.

·  Capacity Utilization

Average capacity utilization in August 2009 for total manufacturing was estimated at 81.7 percent. Ten (10) major sectors registered capacity utilization rates of 80% and more, namely: basic metals, food manufacturing, machinery except electrical, electrical machinery, leather products, paper and paper products, miscellaneous manufactures, chemical products, non-metallic mineral products and rubber and plastic products. Refer to Table 6.

The proportion of establishments that operated at full capacity (90% to 100%) was 10.8 percent in August 2009. About 64.3 percent of the establishments operated at 70% to 89% capacity while 24.9 percent of the establishments operated below 70% capacity.

·  Response Rates

The response rates for the August 2009 MISSI and PPS are 88.6 percent and 93.7 percent, respectively. Refer to Tables 7 and 8

                     r-revised

·  Technical Notes

Only the 2000 based series will be continued beginning the July 2008 issue.

Starting with the February 2008 issue, a revised industry disaggregation of the MISSI indices and PPI will be adopted to conform with the amended 1994 PSIC groupings.Rubber and Plastic Products is a new major sector, consisting of two subsectors, namely: Rubber Products and Plastic Products. Rubber Products was previously a major sector while Plastic Products was one of the sub-sectors of Chemical Products.

With previously seven (7) subsectors, the major sector of Chemical Products has now six (6) subsectors, namely: Basic Chemicals and Industrial Gases, Fertilizers, Paints, Drugs and Medicines, Cosmetics and Toilet Preparations, and Miscellaneous Chemicals.

The major sector of Machinery except Electrical has been split into two subsectors, namely: Machinery and Equipment, n.e.c. and Office, Accounting and Computing Machinery.

The corresponding weights of the above major sectors and sub-sectors have been recomputed to allow for the revised computation of the indices.

Thus, beginning the February 2008 issue, the VaPI, VoPI, VaNSI, VoNSI and the revised PPI for Total Manufacturing for all months of 2008 are computed based on the revised industry disaggregation.

Also, beginning with the January 2009 data, weights of the major sectors and sub-sectors for the PPI and Capacity Utilization Rate have been computed utilizing the results of the 2006 Census of Philippine Business and Industry for Manufacturing Establishments for 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 sector in the 2000-based series

a/ - less than 0.1 percent increase

Sectors are ranked according to their contribution to the overall 2000-based August 2009 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 sector in the 2000-based series

Sectors are ranked according to their contribution to the overall 2000-based August 2009 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 sector in the 2000-based series

b/ - less than 0.1 percent decrease

Sectors are ranked according to their contribution to the overall 2000-based August 2009 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 sector in the 2000-based series

Sectors are ranked according to their contribution to the overall 2000-based August 2009 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