Preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI) for December 1998 indicated a year-on-year decline in both production and sales in the manufacturing sector. Value of production decreased by 5.8 and its corresponding volume, by 10.6 percent from December 1997. The value of net sales also dropped by 5.3 percent and its corresponding volume, by 6.0 percent.

The year-on-year drop in value of production was due to the decline in 10 out of 16 sectors, namely: petroleum products (-24.9%), wearing apparel (-20.3%), electrical machinery (-5.4%), non-metallic mineral products (-12.1%), food manufacturing (-2.0%), transport equipment (-7.9%), basic metals (-2.8%), miscellaneous manufactures (-24.6%), chemicals (-0.7%), and furniture & fixtures (-0.5%).

Petroleum products which decreased year-on-year by 24.9 percent in production value, also registered a 23.4 percent drop in production volume. The decline was primarily due to low purchases of crude oil by one of the four refineries. Net sales during the same period dropped by 34.8 percent in value and 0.4 percent in volume.

Wearing apparel declined by 20.3 percent in production value and 40.6 percent in production volume. Value and volume of net sales also dropped by 2.6 percent and 27.5 percent, respectively. This decline can be attributed to the temporary closure of one and a labor strike in another key sample establishment.

Electrical machinery recorded a 5.4 percent and 16.3 percent drop in value and volume of production, respectively, due to the reduction in operations of two sample firms in November.

Basic metals and non-metallic mineral products posted relatively higher volume of production compared to last year (18.3% and 1.3%, respectively) but contracted in terms of value (-2.8% and -12.1%, respectively). This was accompanied by the substantial decline in producers� prices particularly of iron and steel (-20.6%) and cement products (-29.2%).

The sectors that posted year-on-year increases in value and volume of production were textile, beverage, wood & wood products, rubber products, and tobacco.

Textile posted a 39.0 percent uptick in value and 23.1 increase in volume of production. The value and volume of production in beverage increased by 51.9 percent and 41.6 percent, respectively. Wood & wood products increased by 19.3 percent in value and by 19.1 percent in volume of production. Rubber products recorded an increase of 42.2 percent and 33.6 percent in value and volume of production, respectively; and tobacco, likewise by 7.8 percent and 2.8 percent.

About 40.0 percent of responding firms/establishments operated below 70 percent capacity in December 1998 compared to 37.2 percent in December 1997. On the other hand, 15.4 percent of the sample firms operated at full capacity (90%-100%) compared to 16.7 percent last year. Capacity utilization is defined as the ratio of output to the maximum rated capacity of the plant.

These results were based on the response of 357 sample establishments which comprised 64.9 percent of the total number of sample enterprises covered by the survey.

Distribution of Key Enterprise by Capacity Utilization
(In percent)

Percentage Changes in Production and Net Sales of Key Enterprises: January 1998 - December 1998

r - revised due to updating of data from late responding establishments.

ANNEX 1-A

VALUE OF PRODUCTION

Year-on-year

Year-on-year decreases were observed in 10 out of 16 major sectors resulting in a 5.8 percent decline in the value of production. Posting the biggest drop among the sectors was petroleum products which decreased by 24.9 percent due to the low purchases of crude oil. Other sectors that posted year-on-year decreases were wearing apparel (-20.3%), electrical machinery (-5.4%), non-metallic mineral products (-12.1%), and food manufacturing (-2.0%).

On the other hand, textile posted a year-on-year growth of 39.0 percent due to increased job orders. Other sectors that posted growths were beverage (51.9%), wood & wood products (19.3%), rubber products (42.2%), paper & paper products (10.3%), and tobacco (7.8%).

Month-on-month

On a month-on-month basis, the value of production index dropped by 4.7 percent. Eleven sectors experienced declines led by electrical machinery (9.6%). Other sectors which suffered declines were petroleum products (-2.5%), paper & paper products (-10.1%), wearing apparel (-5.8%), transport equipment (-7.2%), basic metals (-2.9%), and rubber products (-12.4%).

On the other hand, five sectors gained in terms of value of production led by wood & wood products with an increase of 13.2 percent. The substantial growth in the value of production of this sector was attributed to the increase in exports. Other sectors that contributed to the positive performance were textile (6.8%), beverage (8.3%), non-metallic mineral products (4.4%), and chemicals (0.8%).

VALUE OF PRODUCTION INDEX (DECEMBER 1998)

YEAR-ON-YEAR

GAINERS                                                                      GROWTH (%)

LOSERS

MONTH-ON-MONTH

GAINERS                                                                                  GROWTH (%)

LOSERS

Note: Sectors are ranked according to their contribution to the overall December 1998 growth rate.

r - revised due to updating of data from late responding establishments.

ANNEX 1-B

VOLUME OF PRODUCTION

Year-on-year

The volume of production index (VoPI) declined by 10.6 percent. Decreases were observed in 9 out of 16 sectors led by petroleum refineries which declined by 23.4 percent. Other sectors which largely contributed to the negative performance of the overall VoPI were wearing apparel (-40.6%), food manufacturing (-10.1%), electrical machinery (-16.3%), chemicals (-12.8%), transport equipment (-20.9%), and other manufacturing industries (-30.7%).

On the other hand, seven sectors posted year-on-year increases led by basic metals with a growth of 18.3 percent. Other sectors that registered double-digit year-on-year increases were textile (23.1%), beverage (41.6%), wood & wood products (19.1%), and rubber products (33.6%).

Month-on-month

On a monthly basis, nine sectors registered declines resulting in a 3.0 percent drop in VoPI. Electrical machinery, which posted a decline of 8.2 percent, contributed largely to the decrease in overall VoPI. Other sectors that significantly contributed to the downward pull of the overall month-on-month growth were paper & paper products (-9.8%), transport equipment (-7.4%), wearing apparel (-3.4%), and rubber products (-13.2%).

On the other hand, seven sectors exhibited growths over the previous month. These were led by basic metals with a 10.0 percent increase, followed by wood & wood products (13.2%), textile (4.5%), non-metallic mineral products (6.6%), and beverage (8.3%).

VOLUME OF PRODUCTION INDEX (DECEMBER 1998)

YEAR-ON-YEAR

GAINERS                                                                                    GROWTH (%)

LOSERS

MONTH-ON-MONTH

GAINERS                                                                        GROWTH (%)

LOSERS

Note: Sectors are ranked according to their contribution to the overall December 1998 growth rate.

r - revised due to updating of data from late responding establishments.

ANNEX 2-A

VALUE OF NET SALES

Year-on-year

The value of net sales for December 1998 decreased by 5.3 percent compared to a year ago. Ten out of sixteen sectors posted decreases led by petroleum products which declined by 34.8 percent. Other sectors that recorded declines were basic metals (-27.4%), non-metallic mineral products (-38.2%), wood & wood products (-31.8%), transport equipment (-5.5%), furniture & fixtures (-34.1%), wearing apparel (-2.6%), food manufacturing (-0.8%), miscellaneous manufactures (-8.1%), and tobacco (-16.3%).

On the other hand, six sectors posted growths. Electrical machinery posted the biggest growth of 28.8 percent. Other sectors that posted gains were chemicals (20.0%), rubber products (77.4%), beverages (33.8%), paper & paper products (3.9%), and textile (0.7%),

Month-on-month

On a month-on-month basis, the value of net sales increased by 1.9 percent compared November 1998. Leading the gainers was basic metals which increased by 28.6 percent. Other sectors that posted growths were food manufacturing (3.6%), wood & wood products (15.0%), wearing apparel (8.8%), petroleum products (1.5%), beverages (12.6%), transport equipment (4.0%), furniture & fixtures (23.2%), and non-metallic mineral products (3.3%).

On the other hand, seven sectors posted decreases. Electrical machinery recorded the biggest decline of 12.1 percent. Other sectors that registered decreases were paper products (-17.9%), rubber products (-31.1%), chemicals (-3.4%), textile (-2.6%), miscellaneous manufactures (-19.9%), and tobacco (-6.2%).

NET SALES VALUE (DECEMBER 1998)

YEAR-ON-YEAR

GAINERS                                                      GROWTH (%)

LOSERS

MONTH-ON-MONTH

GAINERS                                                                      GROWTH (%)

LOSERS

Note: Sectors are ranked according to their contribution to the overall December 1998 growth rate.

ANNEX 2-B

VOLUME OF NET SALES

Year-on-Year

The volume of net sales for December 1998 posted a decline of 6.0 percent over the same month last year. Decreases were noted in twelve sectors. Food manufacturing posted the largest decrease of 11.2 percent, followed by wearing apparel (-27.5%), non-metallic mineral products (-33.7%), wood & wood products (-31.9%), basic metals (-16.3%), transport equipment (-18.9%), textile (-10.8%), paper & paper products (-5.9%), furniture & fixtures (-24.6%), petroleum products (-0.4%), miscellaneous manufactures (-15.5%), and tobacco (-20.5%).

On the other hand, four sectors posted growths, namely electrical machinery (14.0%), rubber products (66.7%), beverages (24.7%), and chemicals (5.5%).

Month-on-Month

On a month-on-month basis, the volume of net sales grew by 1.5 percent over November. Basic metals led the sectors with an increase of 38.0 percent. Other sectors contributing to the overall growth were food manufacturing (3.7%), wearing apparel (11.5%), wood and wood products (15.0%), beverages (12.6%), non-metallic mineral products (7.4%), and transport equipment (3.8%).

On the other hand, sectors that posted decreases were electrical machinery (-10.6%), petroleum products (-4.4%), paper & paper products (-17.6%), rubber products (-31.8%), chemicals (-3.2%), textile (-4.7%), miscellaneous manufactures (-21.5%), furniture & fixtures (-7.5%), and tobacco (-6.2%).

NET SALES VOLUME (DECEMBER 1998)

YEAR-ON-YEAR

GAINERS                                           GROWTH (%)

LOSERS

MONTH-ON-MONTH

GAINERS                                                                      GROWTH (%)

LOSERS

Note: Sectors are ranked according to their contribution to the overall December 1998 growth rate.