r -revised

·  Value of Production Index (VaPI) maintains upward trend

Value of Production Index (VaPI) for the manufacturing industry on a year-on-year basis continued to gain by 17.0 percent in December 2004, according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). Major sources of increase were observed in the following sectors: rubber products, publishing and printing, furniture and fixtures, petroleum products, non-metallic mineral products, transport equipment, electrical machinery, footwear and wearing apparel, wood and wood products, miscellaneous manufactures, chemical products and paper and paper products. Refer to Tables 1-A and 1.

However, VaPI's performance on a month-on-month basis, decreased by 1.0 percent compared to the previous month. Sectors that contributed to the decline were leather products, transport equipment, fabricated metal products, miscellaneous manufactures and textile.Refer to Tables 1-A and 1.

·  Volume of Production Index (VoPI) continues to improve

Volume of Production Index (VoPI) registered a year-on-year increase of 5.7 percent in December 2004. Sectors that significantly attributed to the increase were rubber products, furniture and fixtures, publishing and printing, beverage, transport equipment, non-metallic mineral products, electrical machinery, miscellaneous manufactures and textile. Refer to Tables 2 and 1-B.

On a month-on-month basis, VoPI in December 2004 continued to decline by 1.4 percent. Major contributors to the decrease were from leather products, fabricated metals, transport equipment and miscellaneous manufactures. Refer to Tables 2 and 1-B.

·  Value of Net Sales continues to gain

Value of Net Sales in December 2004 continued to grow by 7.6 percent compared to a year ago figure. Leather products exhibited significant increase of 141.5 percent. Sectors which posted considerable increases were rubber products, publishing and printing, tobacco, basic metals, transport equipment, petroleum products, wood and wood products, furniture and fixtures, textile, paper and paper products and electrical machinery. Refer to Tables 2-A and 3.

On a month-on-month basis, Value of Net Sales made a turnaround increase of 3.8 percent in December 2004 from a decline of 4.0 percent in the previous month. Sectors that contributed to the increase were tobacco, beverage, petroleum products and publishing and printing. Refer to Tables 2-A and 3.

·  Volume of Net Sales still on its downtrend

Volume of Net Sales, on a year-on-year basis, registered a decline of 7.2 percent in December 2004. Significant decreases were observed in the following sectors: footwear and wearing apparel, fabricated metal products, chemical products, miscellaneous manufactures, food manufacturing, machinery excluding electrical, and petroleum products.Refer to Tables 2-B and 4.

On a month-on-month basis, Volume of Net Sales managed to grow by 3.1 percent from a decline of 4.5 percent in the previous month. Four (4) sectors, which significantly contributed to the increase, were tobacco, beverage, petroleum products and publishing and printing.Refer to Tables 2-B and 4.

·  Producer's Price Index (PPI) edge higher

Producer's Price Index (PPI) for total manufacturing posted a year-on-year increase of 10.7 percent in December 2004. This was brought about by significant increases of the following major sectors: Footwear and wearing apparel, petroleum products, basic metals, chemical products, tobacco, fabricated metal products, food manufacturing and non-metallic mineral products.Refer to Table 5..

On a month-on-month basis, PPI for total manufacturing gained by 0.40 percent in December 2004 from a low 0.10 percent growth in the previous month. Sectors that contributed to the increase were chemical products, wood and wood products, paper and paper products and footwear and wearing apparel.Refer to Table 5.

·  Capacity Utilization

Average capacity utilization in December 2004 for total manufacturing was estimated at 79.9 percent. Sectors with more than 80% capacity utilization rates were the following: machinery excluding electrical, electrical machinery, paper and paper products, petroleum products, miscellaneous manufactures, rubber products, basic metals, leather products, food manufacturing and chemical products.Refer to Table 6..

In December 2004, the proportion of establishments that operated at full capacity (90%-100%) was 15.8 percent. More than half or 52.6 percent of the establishments operated at 70%-89% capacity and 31.6 percent of the establishments operated below 70% capacity.

Distribution of Key Manufacturing Establishments by Capacity Utilization
Total Manufacturing, December 2004
(In percent)

·  Response Rate

The response rate for December 2004 is 90.7 percent, which corresponds to the retrieval of 488 sample establishments' reports.Refer to Table 7.

Response Rates for Total Manufacturing
(In percent)

·  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.
 

TABLE 1-A. VALUE OF PRODUCTION INDEX, November - December 2004
(1994 =100)

TABLE 1-A. VALUE OF PRODUCTION INDEX, November - December 2004
(concluded)
(1994=100)

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

Sectors are ranked according to their contribution to the overall 1994-based December 2004 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, November - December 2004
(1994 = 100)

TABLE 1-B. VOLUME OF PRODUCTION INDEX, November - December 2004
(concluded)
(1994=100)

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

Sectors are ranked according to their contribution to the overall 1994-based December 2004 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, November - December 2004
(1994=100)

TABLE 2-A. VALUE OF NET SALES, November - December 2004 (concluded)
(1994=100)

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

Sectors are ranked according to their contribution to the overall 1994-based December 2004 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, November - December 2004
(1994=100)

TABLE 2-B. VOLUME OF NET SALES, November - December 2004 (concluded)
(1994=100)

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

Sectors are ranked according to their contribution to the overall 1994-based December 2004 growth rate.

Year-on-year growth ratesare 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