r-revised
                                         

·  Value of Production on the downtrend

Value of Production Index (VaPI) for the manufacturing industry declined by 9.6 percent in December 2008, after registering positive growths in the last eight months since April 2008, according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). This maybe due to the lackluster performance in 12 major sectors led by miscellaneous manufactures, petroleum products, machinery except electrical, furniture and fixtures, textiles, publishing and printing, electrical machinery, basic metals, and transport equipment. Refer to Tables 1-A and 1.

On a month-on-month basis, VaPI dropped by 3.3 percent in December 2008. Production values of 17 major sectors contracted, with two-digit decreases observed in the following: miscellaneous manufactures, leather products, transport equipment, fabricated metal products, textiles, electrical machinery, and tobacco products. Refer to Tables 1-A and 1.

·  Volume of Production registers a two-digit decline

Volume of Production Index (VoPI) on year-on-year basis recorded a two-digit decrease at 15.4 percent in December 2008. Significant reductions in factory output were noted in the following major sectors: miscellaneous manufactures, machinery except electrical, textiles, petroleum products, electrical machinery, publishing and printing, furniture and fixtures, leather products, basic metals, transport equipment, and paper and paper products. Refer to Tables 1-B and 2.

VoPI, on a monthly basis, likewise, fell by 1.9 percent in December 2008. Sixteen major sectors accounted for the declines in factory output led by the following: miscellaneous manufactures, leather products, transport equipment, fabricated metal products, textiles, electrical machinery, and tobacco products. Refer to Tables 1-B and 2.

·  Value of Net Sales continues to decline

On a year-on-year basis, Value of Net Sales Index (VaNSI) continued its downtrend as it posted a decrease of 16.8 percent in December 2008. Sectors that significantly contributed to the decrease were the following: miscellaneous manufactures, furniture and fixtures, basic metals, machinery except electrical, textiles, petroleum products, leather products, publishing and printing, wood and wood products, electrical machinery, food manufacturing, and transport equipment. Refer to Tables 2-A and 3.

On a month-on-month comparison, VaNSI dropped by 2.4 percent in December 2008. This was due to the decreases observed in 14 major sectors, led by miscellaneous manufactures with 44.1 percent sales decrease. Refer to Tables 2-A and 3.

·  Volume of Net Sales decelerates further

Volume of Net Sales Index (VoNSI), on a year-on-year basis, likewise, continued to decrease registering at 22.1 percent in December 2008. The decline was exhibited by 17 major sectors, with two-digit decreases observed in the following: miscellaneous manufactures, furniture and fixtures, machinery except electrical, textiles, basic metals, publishing and printing, leather products, electrical machinery, wood and wood products, food manufacturing, beverages, paper and paper products, chemical products, and transport equipment. Refer to Tables 2-B and 4.

VoNSI, on a monthly basis, went down at a slower rate of 1.0 percent in December 2008. Thirteen major sectors reported a month-on-month decreases in sales volume, led by leather products with a decline of 44.1 percent. Refer to Tables 2-B and 4.

·  Capacity Utilization

Average capacity utilization in December 2008 for total manufacturing was estimated at 80.5 percent. Ten major sectors that registered capacity utilization rates of 80% and more were the following: basic metals, food manufacturing, leather products, paper and paper products, petroleum products, electrical machinery, chemical products (excluding plastic products), miscellaneous manufactures, rubber and plastic products, and footwear and wearing apparel. Refer to Table 6.

The proportion of establishments that operated at full capacity (90% to 100%) was 11.2 percent in December 2008. More than half or 61.4 percent of the establishments operated at 70% to 89% capacity while 27.4 percent of the establishments operated below 70% capacity.

·  Response Rates

The response rates for the December 2008 MISSI and PPS are 90.4 percent and 95.8 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 to the 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.

Starting 2008, weights for the PPI and Capacity Utilization Rates are based from the results of the 2005 Annual Survey of Philippine Business and Industry for manufacturing establishments with average total employment 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.

Sectors are ranked according to their contribution to the overall 2000-based December 2008 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 December 2008 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

Sectors are ranked according to their contribution to the overall 2000-based December 2008 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 December 2008 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