r -revised

• Value of Production Index grows at slower rate
  

  Value of Production Index (VaPI) for the manufacturing industry on a year-on-year basis increased by 11.0 percent in February 2005, according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). Significant increments were posted by the following major sectors: transport equipment , furniture and fixtures, footwear and wearing apparel, petroleum products, chemical products, non-metallic mineral products, textile, and leather products .Refer to Tables 1-A and 1.

  On a month-on-month basis, VaPI went down by 1.1 percent in February this year. Two (2) sectors which significantly pulled down VAPI were: machinery excluding electrical and leather products.Refer to Tables 1-A and 1.

• Volume of Production Index (VoPI) gains
  

  Volume of Production Index (VoPI) registered a year-on-year increase of 2.4 percent in February 2005. Transport equipment led the sectors with a double-digit growth of 46.1 percent. Other sectors with significant increment were: furniture and fixtures, textile, beverage, miscellaneous manufactures and footwear and wearing apparel. Refer to Tables 2 and 1-B.

  On a month-on-month basis, VoPI in February 2005 went down by 0.1 percent brought about by the double-digit decreases in: machinery excluding electrical and leather products. Refer to Tables 2 and 1-B.

• Value of Net Sales continues to move upward
  

  Value of Net Sales in February 2005 posted an increment of 5.5 percent compared to a year ago figure. Sectors that significantly contributed to the increase were: basic metals, transport equipment, petroleum products, furniture and fixtures, leather products, publishing and printing, wood and wood products, textiles, chemical products, rubber products, non-metallic mineral products and paper and paper products. Refer to Tables 2-A and 3.

  Furthermore, Value of Net Sales on a month-on-month basis made a rebound and went up by 11.7 percent from a negative growth rate posted during the previous month. Electrical machinery accounted for the highest growth of 51.9 percent. Other sectors that posted double-digit increases were: tobacco, textiles, transport equipment and paper and paper products.Refer to Tables 2-A and 3.

• Volume of Net Sales keeps decreasing trend
  

  Volume of Net Sales on a year-on-year basis declined by 4.6 percent in February 2005. Significant decreases were observed in the following sectors: tobacco, machinery excluding electrical , fabricated metal products, electrical machinery and footwear and wearing apparel.Refer to Tables 2-B and 4.

  On a monthly basis, however, Volume of Net Sales accelerated to 12.6 percent from a negative growth of 17.0 percent during the previous month. Sectors which significantly contributed to the increment were: electrical machinery, tobacco, transport equipment, textile, miscellaneous manufactures, beverage and chemical products.Refer to Tables 2-B and 4.

Producer's Price Index (PPI) continues to increase

Producer's Price Index (PPI) for total manufacturing registered a year-on-year increase of 8.4 percent in February 2005. Sectors with double-digit increases were: petroleum products, tobacco, fabricated metal products, basic metals, chemical products, footwear and wearing apparel and machinery excluding electrical.Refer to Table 5..

On the other hand, PPI on a monthly basis declined by 1.1 percent in February 2005 from a previous month increase of 1.2 percent. The top five sectors that contributed to the decrease were the following: miscellaneous manufactures, footwear and wearing apparel, beverage, electrical machinery and transport equipment. Refer to Table 5.

•  
• Capacity Utilization
  

  Average capacity utilization in February 2005 for total manufacturing was estimated at 79.8 percent. Sectors with more than 80% capacity utilization rates were the following: machinery excluding electrical, electrical machinery, petroleum products, paper and paper products, miscellaneous manufactures, basic metals, rubber products, leather products, food manufacturing and chemical products.Refer to Table 6..

  In February 2005, the proportion of establishments that operated at full capacity (90%-100%) was 13.7 percent. More than half or 55.2 percent of the establishments operated at 70%-89% capacity and 31.1 percent of the establishments operated below 70% capacity.

  Distribution of Key Manufacturing Establishments by Capacity Utilization
  Total Manufacturing, February 2005
  (In percent)

  Capacity Utilization	Percent Share
  Below 50 percent	6.6
  50 percent - 59 percent	8.0
  60 percent - 69 percent	16.5
  70 percent - 79 percent	22.3
  80 percent - 89 percent	32.9
  90 percent - 100 percent	13.7

• Response Rate
  

  The response rate for February 2005 is 86.0 percent, which corresponds to the retrieval of 448 sample establishments' reports. Refer to Table 7.

  Response Rates for Total Manufacturing
  (In percent)

  February 2005	January 2005           (revised)
  86.0	90.8

• 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.
   

  (Sgd.) CARMELITA N. ERICTA                                                                                                     Administrator

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  TABLE 1-A. VALUE OF PRODUCTION INDEX, January 2005 - February 2005
  (1994 =100)

  Gainers	Year-on-Year Growth (percent)
  	February 2005	January 2005 (revised)
  Petroleum Products	24.7	21.6
  Transport Equipment	47.9	-2.4
  Chemical Products	19.9	25.6
  Food Manufacturing	9.7	8.6
  Footwear and Wearing Apparel*	26.1	15.1
  Non-Metallic Mineral Products	19.1	7.9
  Electrical Machinery	5.6	18.6
  Textile	18.4	14.7
  Beverage	8.5	13.7
  Basic Metals	5.9	8.0
  Furniture and Fixtures	40.9	47.6
  Paper and Paper Products	6.9	7.9
  Publishing and Printing*	8.2	32.6
  Miscellaneous Manufactures	5.3	13.0
  Wood and Wood Products	5.4	15.8
  Rubber Products	6.1	21.5
  Leather Products*	16.5	23.6
  Losers	Year-on-Year Growth (percent)
  	February 2005	January 2005 (revised)
  Tobacco	-23.0	-10.3
  Machinery Excluding Electrical*	-43.6	-27.8
  Fabricated Metal Products*	-7.7	0.9

  TABLE 1-A. VALUE OF PRODUCTION INDEX, January 2005 - February 2005
  (concluded)
  (1994=100)

  Gainers	Month-on-Month Growth (percent)
  	February 2005	January 2005 (revised)
  Transport Equipment	29.1	-13.7
  Food Manufacturing	3.4	-6.0
  Chemical Products	4.8	-1.5
  Textile	9.9	-1.6
  Non-Metallic Mineral Products	8.7	-0.2
  Footwear and Wearing Apparel*	6.7	-13.7
  Wood and Wood Products	8.1	-10.8
  Miscellaneous Manufactures	4.2	-6.1
  Furniture and Fixtures	4.2	-3.7
  Paper and Paper Products	1.0	-4.9
  Losers	Month-on-Month Growth (percent)
  	February 2005	January 2005 (revised)
  Petroleum Products	-6.4	-22.1
  Electrical Machinery	-6.2	10.5
  Machinery Excluding Electrical*	-26.9	-21.4
  Beverage	-4.3	-11.5
  Basic Metals	-3.6	-0.8
  Fabricated Metal Products*	-5.5	-5.6
  Publishing and Printing*	-6.4	-28.5
  Rubber Products	-4.9	-0.6
  Tobacco	-0.6	-24.7
  Leather Products*	-10.5	25.2

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

  Sectors are ranked according to their contribution to the overall 1994-based February 2005 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 2005 - February 2005
  (1994 = 100)

  Gainers	Year-on-Year Growth (percent)
  	February 2005	January 2005 (revised)
  Transport Equipment	46.1	-4.5
  Beverage	12.4	13.5
  Textile	16.9	12.4
  Chemical Products	4.1	9.0
  Footwear and Wearing Apparel*	10.2	-1.7
  Food Manufacturing	2.0	-2.9
  Non-Metallic Mineral Products	8.0	-1.5
  Furniture and Fixtures	40.4	45.8
  Electrical Machinery	1.8	11.1
  Miscellaneous Manufactures	11.4	7.2
  Paper and Paper Products	6.0	10.1
  Publishing and Printing*	4.7	28.3
  Rubber Products	3.8	18.3
  Leather Products*	8.7	17.5
  Losers	Year-on-Year Growth (percent)
  	February 2005	January 2005 (revised)
  Tobacco	-38.7	-28.6
  Machinery Excluding Electrical*	-50.3	-36.4
  Basic Metals	-9.5	-11.2
  Petroleum Products	-3.4	-6.3
  Fabricated Metal Products*	-23.0	-15.4
  Wood and Wood Products	-3.6	7.0

  TABLE 1-B. VOLUME OF PRODUCTION INDEX, January 2005 - February 2005
  (concluded)
  (1994=100)

  Gainers	Month-on-Month Growth (percent)
  	February 2005	January 2005 (revised)
  Transport Equipment	31.1	-13.7
  Food Manufacturing	3.6	-8.5
  Chemical Products	5.1	1.3
  Footwear and Wearing Apparel *	13.0	-14.3
  Textile	10.5	-2.4
  Non-Metallic Mineral Products	6.2	-1.4
  Miscellaneous Manufactures	15.8	-7.5
  Wood and Wood Products	7.3	-9.9
  Furniture and Fixtures	4.8	-3.4
  Losers	Month-on-Month Growth (percent)
  	February 2005	January 2005 (revised)
  Petroleum Products	-8.4	-19.4
  Electrical Machinery	-3.2	15.7
  Machinery Excluding Electrical*	-26.8	-30.2
  Basic Metals	-3.6	-6.7
  Fabricated Metal Products*	-6.0	-9.0
  Publishing and Printing*	-6.4	-28.5
  Beverage	-0.8	-11.5
  Paper and Paper Products	-2.1	4.8
  Rubber Products	-4.9	-0.6
  Tobacco	-0.6	-30.1
  Leather Products*	-12.6	18.2

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

  Sectors are ranked according to their contribution to the overall 1994-based February 2005 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 2005 - February 2005
  (1994=100)

  Gainers	Year-on-Year Growth (percent)
  	February 2005	January 2005 (revised)
  Petroleum Products	19.5	15.2
  Chemical Products	15.1	8.4
  Basic Metals	25.4	31.8
  Transport Equipment	23.5	5.8
  Food Manufacturing	4.3	6.6
  Textile	16.6	10.4
  Non-Metallic Mineral Products	11.5	19.3
  Beverage	7.1	11.3
  Publishing and Printing*	18.0	8.6
  Paper and paper products	10.6	3.9
  Wood and Wood Products	16.7	17.2
  Furniture and Fixtures	18.7	34.1
  Rubber Products	13.9	31.2
  Leather Products*	18.3	1.7
  Losers	Year-on-Year Growth (percent)
  	February 2005	January 2005 (revised)
  Electrical Machinery	-18.2	-36.1
  Tobacco	-56.6	-66.3
  Machinery Excluding Electrical*	-50.3	-28.8
  Fabricated Metal Products	-13.6	-3.7
  Miscellaneous Manufactures	-8.1	6.4
  Footwear and Wearing Apparel	-0.5	15.1

  TABLE 2-A. VALUE OF NET SALES, January 2005 - February 2005 (concluded)
  (1994=100)

  Gainers	Month-on-Month Growth (percent)
  	February 2005	January 2005 (revised)
  Electrical Machinery	51.9	-36.5
  Chemical Products	9.9	-9.7
  Food Manufacturing	6.0	-16.4
  Transport Equipment	15.8	-17.4
  Tobacco	26.8	-80.4
  Beverage	9.5	-26.9
  Textile	16.3	-3.5
  Paper and Paper Products	12.5	-2.5
  Petroleum Products	1.7	-17.6
  Non-Metallic Mineral Products	5.0	17.5
  Publishing and Printing*	6.6	-38.3
  Furniture and Fixtures	8.6	-4.3
  Miscellaneous Manufactures	4.4	13.1
  Losers	Month-on-Month Growth (percent)
  	February 2005	January 2005 (revised)
  Machinery Excluding Electrical*	-30.7	-15.9
  Basic Metals	-1.9	5.3
  Footwear and Wearing Apparel*	-1.7	-12.0
  Rubber Products	-8.4	15.8
  Wood and Wood Products	-5.2	-13.6
  Fabricated Metal Products*	-0.4	-15.2
  Leather Products*	-5.7	26.0

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

  Sectors are ranked according to their contribution to the overall 1994-based February 2005 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 2005 - February 2005
  (1994=100)

  Gainers	Year-on-Year Growth (percent)
  	February 2005	January 2005 (revised)
  Transport Equipment	22.0	3.6
  Beverage	10.8	11.1
  Textile	15.2	8.1
  Basic Metals	7.1	8.3
  Paper and Paper Products	9.6	6.1
  Publishing and Printing*	14.2	5.1
  Furniture and Fixtures	18.3	32.4
  Rubber Products	11.5	27.8
  Wood and Wood Products	6.7	8.3
  Non-Metallic Mineral Products	1.0	8.8
  Leather Products*	10.3	-3.4
  Losers	Year-on-Year Growth (percent)
  	February 2005	January 2005 (revised)
  Electrical Machinery	-21.1	-40.1
  Tobacco	-65.5	-73.2
  Petroleum Products	-7.8	-11.4
  Machinery Excluding Electrical*	-56.2	-37.3
  Food Manufacturing	-3.0	-4.7
  Footwear and Wearing Apparel*	-13.0	-1.7
  Fabricated Metal Products*	-28.0	-19.3
  Miscellaneous Manufactures	-2.7	0.9
  Chemical Products	-0.1	-5.9

  TABLE 2-B. VOLUME OF NET SALES, January 2005 - February 2005 (concluded)
  (1994=100)

  Gainers	Month-on-Month Growth (percent)
  	February 2005	January 2005 (revised)
  Electrical Machinery	56.7	-33.5
  Chemical Products	10.3	-7.1
  Food Manufacturing	6.2	-18.6
  Transport Equipment	17.6	-17.4
  Tobacco	26.8	-81.8
  Beverage	13.4	-26.9
  Textile	16.9	-4.3
  Paper and Paper Products	9.1	7.5
  Footwear and Wearing Apparel*	4.1	-12.7
  Miscellaneous Manufactures	16.0	11.5
  Non-Metallic Mineral Products	2.5	16.1
  Publishing and Printing*	6.6	-38.3
  Furniture and Fixtures	9.2	-4.1
  Losers	Month-on-Month Growth (percent)
  	February 2005	January 2005 (revised)
  Machinery Excluding Electrical*	-30.7	-25.3
  Basic Metals	-1.9	-1.0
  Petroleum Products	-0.7	-14.9
  Wood and Wood Products	-6.0	-12.7
  Rubber Products	-8.4	15.8
  Fabricated Metal Products*	-1.0	-18.3
  Leather Products*	-7.9	19.0

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

  Sectors are ranked according to their contribution to the overall 1994-based February 2005 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.

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  Source:   National Statistics Office
                   Manila, Philippines