r -revised

• Value of Production Index (VaPI) maintains upward trend

Value of Production Index (VaPI) for the manufacturing industry registered a single-digit year-on-year increase in February 2004 at 4.8 percent, according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). Sectors that significantly contributed to the growth were the following: publishing and printing, machinery excluding electrical, basic metals and paper and paper products (see Table 1-A).

However, on a monthly basis, VaPI, grew slightly by 0.5 percent in February this year as double-digit increases were noted in three sectors, namely: wood and wood products, tobacco and furniture and fixtures (see Table 1-A).

• Volume of Production Index (VoPI) levels off

On a year-on-year comparison, Volume of Production Index (VoPI) remained flat in February 2004 from a negative growth exhibited during the previous month. Nevertheless, double-digit increases were observed in the following sectors: publishing and printing, machinery excluding electrical, paper and paper products, beverage and rubber products (see Table 1-B).

On a month-on-month basis, VoPI dropped by 0.3 percent in February 2004. Significant decreases were reported by the following sectors: transport equipment and leather products (see Annex 1-B).

• Value of Net Sales remains upbeat
  

  Year-on-year growth of Value of Net Sales continued to climb at 13.3 percent in February 2004. Major increases were reported by the following sectors: basic metals, electrical machinery, machinery excluding electrical, publishing and printing, food manufacturing, nonmetallic mineral products and petroleum products (see Table 2-A).

  Similarly, Value of Net Sales on a monthly basis improved by 6.5 percent in February 2004. Double-digit increases were observed in the following sectors: furniture and fixtures, electrical machinery, miscellaneous manufactures, beverage and food manufacturing (see Table 2-A).

• Volume of Net Sales picks up

On a year-on-year comparison, Net Sales Volume in February 2004 rose by 5.4 percent. Sectors that made significant contributions to the increase were the following: basic metals, electrical machinery, machinery excluding electrical, publishing and printing, beverage and paper and paper products (see Table 2-B).

Likewise, Volume of Net Sales on a month-on-month basis was up by 5.6 percent in February 2004. This was due to the improved sales in the following sectors which exhibited double-digit increments: furniture and fixtures, electrical machinery, miscellaneous manufactures, beverage and footwear and wearing apparel (see Table 2-B).

• Producer's Price Index (PPI) keeps increasing trend

The Producer's Price Index (PPI) for total manufacturing in February 2004 posted an increase of 4.8 percent compared to the previous year. Sectors which posted double-digit increases were the following: basic metals, nonmetallic mineral products, footwear and wearing apparel, food manufacturing and textile (see Table 5).

On a monthly basis, PPI for total manufacturing grew by 0.8 percent in February 2004. The increase was mainly due to increases in the following sectors: food manufacturing, basic metals, nonmetallic mineral products and rubber products (see Table 5).

• Capacity Utilization

Average capacity utilization in February 2004 for total manufacturing was estimated at 78.5 percent. Sectors that posted more than 80% capacity utilization rate were the following: machinery excluding electrical, leather products, electrical machinery, paper and paper products, basic metals, rubber products, miscellaneous manufactures, food manufacturing and petroleum products (see Table 6).

The proportion of responding establishments that operated at full capacity (90%-100%) in February 2004 was 14.0 percent. About 50.0 percent of the responding establishments operated at 70%-89% capacity and 36.0 percent of the establishments operated below 70% capacity.

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

• Response Rate

The response rate for February 2004 is 86.2 percent, which corresponds to the retrieval of 464 sample establishments' reports (see 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, January - February 2004
(1994 =100)

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

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

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

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

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

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

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

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

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

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

Note: * - new sectors in the 1994-based series
 
1/ - Less than 0.1 percent decrease.

Sectors are ranked according to their contribution to the overall 1994-based February 2004 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