Table A   Year-on-Year Growth Rates for Production Index,  Net Sales Index and Producer Price Index:

December and November 2012

                                                r-revised                                                     

•    Value of Production increases at a slower pace

Value of Production Index (VaPI) of the manufacturing industry modestly increased by 5.4 percent in December 2012, according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). This could be attributed to the slowdown exhibited by the manufacturing industry during this period, notably by the transport equipment and wood and wood products.  However, footwear and wearing apparel continued to expand significantly with a triple digit increase of 144.4 percent, outpacing the sluggish performance of the manufacturing industry. This was followed by food manufacturing and leather products, which posted two-digit increments of 19.6 percent and 19.2 percent, respectively. Refer to Tables 1-A and 1.

On a month-on-month comparison, VaPI exhibited a flat growth in December 2012. Only 6 out of the 20 major sectors of the manufacturing industry depicted very minimal increase in value of production, except for footwear and wearing apparel, which registered a lift in growth of 51.1 percent. Refer to Tables 1-A and 1.

•    Volume of Production grows moderately in December 2012

Year-on-year, Volume of Production Index (VoPI), increased moderately by 9.3 percent in December 2012. Half of the 20 major manufacturing sectors recorded positive growths. However, footwear and wearing apparel surpassed the sluggish performance of the manufacturing industry after recording its strongest three-digit expansion of 141.8 percent. This was followed by leather products, which increased by 23.4 percent. Other major sectors with two-digit increases were also observed in basic metals (18.9%), food manufacturing (14.1%), fabricated metal products (12.5%), paper and paper products (12.1%), and machinery except electrical (11.0%). Refer to Tables 1-B and 2.

Volumewise, production recorded a slight month-on-month increase of 0.4 in December 2012. This was mainly due to the single-digit increases in production output observed in 6 out of 20 major sectors of the manufacturing industry.  On the other hand, footwear and wearing apparel managed to post a double digit expansion of 47.8 percent. Refer to Tables 1-B and 2.

•    Value of Net Sales moves up in December 2012

Value of Net Sales Index (VaNSI) continued to increase, showing an upward growth of 9.7 percent in December 2012.  This was attributed to the significant expansion made by footwear and wearing apparel, which surged to 214.3 percent.  Non-metallic mineral products also showed good performance as it posted an increase of 58.0 percent due to the strong domestic demand for glass and glass products.   Other major manufacturing sectors that posted double-digit increases were food manufacturing (29.9%), miscellaneous manufactures (25.2%), publishing and printing (22.4%), textiles (21.5%) and rubber and plastic products (14.7%). Refer to Tables 2-A and 3.

On a monthly comparison, VaNSI also moved up by 3.6 percent in December 2012. This was primarily due to the positive growth of 9 of the 20 major manufacturing sectors led by footwear and wearing apparel (47.8%) and beverages (20.3%). Refer to Tables 2-A and 3.

•    Volume of Net Sales increases

Volume of Net Sales Index (VoNSI) expanded, posting 13.8 percent increase in December 2012. In particular, footwear and wearing apparel contributed significantly to the increase which grew further by 211.0 percent, followed by seven major sectors that registered two-digit growth in net sales volume, namely: non-metallic mineral products (57.8%), miscellaneous manufactures (25.9%), food manufacturing (24.0%), textiles (20.5%), machinery except electrical (19.6%), publishing and printing (15.3%) and electrical machinery (12.2%).  Refer to Tables 2-B and 4.

On a month-on-month comparison, VoNSI went up by 4.0 percent in December 2012. The improvement was driven mainly by the double-digit increases in sales volume contributed by the three major sectors of the manufacturing industry:  footwear and wearing apparel (44.6%), beverages (20.3%) and food manufacturing (11.1%).  Refer  to  Tables 2-B and 4.

•    Capacity Utilization in December 2012 is 83.2 percent

Average capacity utilization in December 2012 for total manufacturing stood at 83.2 percent. Sixty percent of the 20 major sectors registered capacity utilization rates of 80 percent or more, namely:

• petroleum products (87.9%)
• basic metals (87.9%)
• food manufacturing (87.5%)
• non-metallic mineral products (84.5%)
• machinery except electrical (84.2%)
• electrical machinery (83.8%)
• rubber and plastic products (82.8%)
• chemical products (82.3%)
• paper and paper products (81.5%)
• wood and wood products (80.4%)
• miscellaneous manufactures (80.3%)
• footwear and wearing apparel (80.1%)

The proportion of establishments that operated at full capacity (90% to 100%) was 20.6 percent in December 2012.  About 56.2 percent of the establishments operated at 70% to 89% capacity while 23.2 percent of the establishments operated below 70% capacity. Refer to Table 6.

Technical Notes

•    Introduction

The Monthly Integrated Survey of Selected Industries (MISSI) is one of the designated statistical activities undertaken by the National Statistics Office with the objective of providing flash indicators on the performance of growth-oriented industries in the manufacturing sector. The survey gathers monthly data on employment, compensation, production, net sales, inventories and capacity utilization.

Beginning with the January 2012 MISSI, the monthly report for the survey was released earlier, that is, 45 days after each reference month instead of the 55 days.

The indicators generated from the 2012 MISSI are Value of Production Index (VaPI), Volume of Production Index (VoPI), Value of Net Sales (VaNSI), and Volume of Net Sales (VoNSI). However, the VoPI and VoNSI are derived indicators utilizing the 2012 Producer Price Index as deflator.

•    Method of Index Computation

The MISSI utilizes the Laspeyres-type method of index computation where the weights are computed from the value of production of the Census of Philippine Business and Industry (CPBI).

For the 2012 MISSI index series with base year of 2000, the weights of the major sectors and sub-sectors were computed from the results of the 2000 CPBI for manufacturing establishments with average total employment of 20 and over. The weights are computed from the value of products sold plus change in inventories.

The formulas in the computation are as follows:

Value of Production Index (VaPI)

•    Industry Coverage

The industry coverage of the 2012 MISSI conforms with the amended 1994 PSIC groupings. There are 20 major sectors, as shown below, with 10 further disaggregated into sub-sectors.

•  Response Rate

The response rates for the December 2012 MISSI and PPS are 81.2 percent and 90.6 percent, respectively.  Refer to Tables 7 and 8.

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.

(Sgd) CARMELITA N. ERICTA
              Administrator

TABLE 1-A  Value of Production Index, November – December 2012

   (2000 =100)

  TABLE 1-A  Value of Production Index, November – December 2012

(2000 = 100) (concluded)

TABLE 1-B  Volume of Production Index, November – December 2012

(2000 = 100)

TABLE 1-B  Volume of Production Index, November – December 2012

(2000 = 100) (concluded)

TABLE 2-A  Value of Net Sales Index, November – December 2012

(2000 =100)

TABLE 2-A  Value of Net Sales Index, November – December 2012

(2000 = 100) (concluded)

TABLE 2-B  Volume of Net Sales Index, November – December 2012

(2000 = 100)

TABLE 2-B  Volume of Net Sales Index, November – December 2012

(2000 = 100) (concluded)