r-revised

• Value of Production Index posts lower growth
  

  Value of Production Index (VaPI) for the manufacturing industry on a year-on-year basis registered an increase of 5.1 percent in February 2006 compared with the year-ago figure, according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). Major sectors that contributed to the growth were the following: petroleum products, furniture and fixtures, fabricated metal products, basic metals, textiles and beverages. Refer to Tables 1-A and 1.

  On the other hand, VaPI on a month-on-month basis decelerated by 3.0 percent in February 2006. Significant decreases were reported by the following sectors: tobacco, publishing and printing, electrical machinery and rubber products. Refer to Tables 1-A and 1.

Volume of Production Index (VoPI) continues its downtrend

Volume of Production Index (VoPI) on a yearly basis dipped further by 11.8 percent due to poor factory performance in the following sectors: wood and wood products, leather products, machinery excluding electrical, electrical machinery, publishing and printing, footwear and wearing apparel, tobacco, non-metallic mineral products, chemical products and transport equipment. Refer to Tables 2 and 1-B.

On a monthly basis, VoPI slightly declined by 2.2 percent in February 2006 from a drop of 18.6 percent in the previous month. Sectors that mainly influence the slacked performance in production were the following: tobacco, publishing and printing and rubber products. Refer to Tables 2 and 1-B.

• Value of Net Sales maintains two-digit growth
  

  Value of Net Sales in February 2006 posted a two-digit growth of 12.6 percent compared to its year-ago figure. This was brought about by the improved sales performance of six (6) major sectors, led by tobacco with 112.0 percent increase. Other sectors that reported double-digit increases were the following: petroleum products, food manufacturing, basic metals, publishing and printing and rubber products. Refer to Tables 2-A and 3.

  Value of Net Sales on a monthly basis, however, decreased by 1.6 percent in February 2006. Major sectors that contributed to the decline were the following: publishing and printing, wood and wood products and non-metallic mineral products. Refer to Tables 2-A and 3.

• Volume of Net Sales posts lower growth
  

  Volume of Net Sales on a yearly basis registered a slight growth of 0.7 percent in February 2006. Though four (4) major sectors posted two-digit increases, this was offset by the two-digit decreases in seven (7) major sectors. Refer to Tables 2-B and 4.

  Net Sales on a monthly basis slipped by 0.8 percent in February 2006. Four (4) major sectors posted two-digit decreases, as follows: publishing and printing, non-metallic mineral products, wood and wood products and petroleum products. Refer to Tables 2-B and 4.

  

•  

• Producer?s Price Index (PPI) maintains two-digit growth
  

  Producer?s Price Index (PPI) for manufacturing maintained its double-digit year-on-year growth of 19.1 percent in February 2006. Seventeen (17) of the 20 major sectors registered price increases, led by electrical machinery with an increase of 88.9 percent. Other sectors that reported double-digit increases were machinery excluding electrical, leather products, petroleum products, non-metallic mineral products and footwear and wearing apparel. Refer to Table 5.

  On a month-on-month basis, PPI exhibited a slight decrease of 0.9 percent in February 2006. Price increases by the thirteen (13) major sectors were offset by the price decreases reported by the seven (7) major sectors. Refer to Table 5.

   

• Capacity Utilization
  

  Average capacity utilization in February 2006 for total manufacturing was estimated at 80.0 percent. Sectors that registered more than 80% capacity utilization rates were the following: machinery excluding electrical, petroleum products, paper and paper products, electrical machinery, miscellaneous manufactures, basic metals, rubber products, leather products, food manufacturing, chemical products and textiles. Refer to Table 6..

  The proportion of establishments that operated at full capacity (90%-100%) was 9.9 percent in February 2006. More than half or 57.5 percent of the establishments operated at 70%-89% capacity and 32.6 percent of the establishments operated below 70% capacity.

  Distribution of Key Manufacturing Establishments by Capacity Utilization
  Total Manufacturing, February 2006
  (In percent)

  Capacity Utilization	Percent Share
  Below 50 percent	4.6
  50 percent - 59 percent	8.9
  60 percent - 69 percent	19.1
  70 percent - 79 percent	20.1
  80 percent - 89 percent	37.4
  90 percent - 100 percent	9.9

• Response Rate
  

  The response rate for February 2006 is 88.4 percent, which corresponds to the retrieval of 451 sample establishments' reports. Refer to Table 7.

  Response Rates for Total Manufacturing
  (In percent)

  February 2006	January 2006            (revised)
  88.4	94.1

• Technical Notes
  

  Starting 2006, weights for the Producer?s Price Index (PPI) are based from the results of the 2003 Annual Survey of Philippine Business and Industry (ASPBI) for manufacturing establishments with average total employment (ATE) 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.
   

  (Sgd.) CARMELITA N. ERICTA                                                                                                     Administrator

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  TABLE 1-A. VALUE OF PRODUCTION INDEX, January 2006 - February 2006
  (1994 =100)

  Gainers	Year-on-Year Growth (percent)
  	February 2006	January 2006 (revised)
  Petroleum Products	42.5	43.0
  Basic Metals	20.0	10.8
  Food Manufacturing	4.1	2.3
  Beverages	13.3	17.8
  Textiles	16.3	28.6
  Fabricated Metal Products*	24.8	23.9
  Furniture and Fixtures	32.6	5.1
  Paper and Paper Products	6.8	-4.8
  Rubber Products	8.2	15.7
  Miscellaneous Manufactures	2.6	1.6
  Losers	Year-on-Year Growth (percent)
  	February 2006	January 2006 (revised)
  Electrical Machinery	-9.7	-1.8
  Chemical Products	-8.2	2.4
  Wood and Wood Products	-58.7	-57.5
  Footwear and Wearing Apparel*	-13.6	-28.4
  Tobacco	-16.2	11.0
  Transport Equipment	-7.0	22.9
  Non-Metallic Mineral Products	-10.4	-8.5
  Publishing and Printing*	-20.6	7.6
  Machinery Excluding Electrical*	-15.1	-35.2
  Leather Products*	-29.9	-29.9

  TABLE 1-A. VALUE OF PRODUCTION INDEX, January 2006 - February 2006
  (concluded)
  (1994=100)

  Gainers	Month-on-Month Growth (percent)
  	February 2006	January 2006 (revised)
  Food Manufacturing	7.3	-34.8
  Footwear and Wearing Apparel*	24.9	-27.5
  Basic Metals	9.4	7.4
  Paper and Paper Products	13.3	-4.6
  Non-Metallic Mineral Products	6.2	-16.5
  Furniture and Fixtures	29.8	-53.2
  Miscellaneous Manufactures	9.7	1.2
  Wood and Wood Products	4.1	8.5
  Textiles	0.1	6.9
  Losers	Month-on-Month Growth (percent)
  	February 2006	January 2006 (revised)
  Electrical Machinery	-11.5	-7.0
  Petroleum Products	-6.7	-18.0
  Tobacco	25.0	2.8
  Beverages	-7.7	7.1
  Publishing and Printing*	-23.2	26.4
  Chemical Products	-1.8	-4.0
  Rubber Products	-11.1	36.0
  Machinery Excluding Electrical*	-4.2	2.1
  Leather Products*	-9.1	-3.6
  Fabricated Metal Products*	-0.6	-43.2
  Transport Equipment	-0.1	5.5

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

  Sectors are ranked according to their contribution to the overall 1994-based February 2006 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 2006 - February 2006
  (1994 = 100)

  Gainers	Year-on-Year Growth (percent)
  	February 2006	January 2006 (revised)
  Petroleum Products	19.2	17.0
  Basic Metals	16.2	7.4
  Fabricated Metal Products*	27.3	26.3
  Textiles	15.2	27.2
  Beverages	5.5	12.6
  Furniture and Fixtures	41.3	11.5
  Food Manufacturing	1.1	-5.2
  Rubber Products	7.1	14.6
  Paper and Paper Products	1.7	-12.6
  Miscellaneous Manufactures	0.2	-0.7
  Losers	Year-on-Year Growth (percent)
  	February 2006	January 2006 (revised)
  Electrical Machinery	-33.9	-46.4
  Chemical Products	-10.3	1.6
  Footwear and Wearing Apparel*	-22.0	-35.7
  Non-Metallic Mineral Products	-20.3	-17.8
  Tobacco	-21.0	4.6
  Wood and Wood Products	-60.1	-59.6
  Machinery Excluding Electrical*	-39.1	-53.5
  Transport Equipment	-8.5	22.0
  Publishing and Printing*	-22.5	-3.2
  Leather Products*	-43.6	-44.9

  TABLE 1-B. VOLUME OF PRODUCTION INDEX, January 2006 - February 2006
  (concluded)
  (1994=100)

  Gainers	Month-on-Month Growth (percent)
  	February 2006	January 2006 (revised)
  Electrical Machinery	24.0	-26.7
  Food Manufacturing	12.5	-38.9
  Footwear and Wearing Apparel*	24.9	-28.8
  Basic Metals	9.2	8.1
  Paper and Paper Products	13.9	-9.8
  Furniture and Fixtures	31.1	-52.5
  Non-Metallic Mineral Products	4.2	-14.2
  Miscellaneous Manufactures	10.7	1.4
  Wood and Wood Products	4.6	5.0
  Losers	Month-on-Month Growth (percent)
  	February 2006	January 2006 (revised)
  Petroleum Products	-6.9	-18.8
  Tobacco	-25.0	-3.1
  Beverages	-7.7	7.3
  Chemical Products	-3.2	-4.1
  Publishing and Printing*	-23.2	32.7
  Rubber Products	-11.1	36.0
  Machinery Excluding Electrical*	-4.1	-9.1
  Fabricated Metal Products*	-1.8	-47.4
  Transport Equipments	-0.4	3.7
  Leather Products*	-9.1	-22.3
  Textiles	0.0	7.2

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

  Sectors are ranked according to their contribution to the overall 1994-based February 2006 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 2006 - February 2006
  (1994=100)

  Gainers	Year-on-Year Growth (percent)
  	February 2006	January 2006 (revised)
  Food Manufacturing	23.9	37.6
  Petroleum Products	27.9	44.1
  Tobacco	112.0	199.1
  Basic Metals	23.4	5.3
  Electrical Machinery	5.8	-5.8
  Beverages	7.8	10.7
  Publishing and Printing*	19.5	61.8
  Chemical Products	1.5	9.6
  Fabricated Metal Products*	6.0	14.3
  Rubber Products	10.0	12.4
  Miscellaneous Manufatures	3.3	-16.4
  Losers	Year-on-Year Growth (percent)
  	February 2006	January 2006 (revised)
  Machinery Excluding Electrical*	-56.1	-66.2
  Wood and Wood Products	-58.2	-54.5
  Transport Equipment	-7.0	16.7
  Footwear and Wearing Apparel*	-8.1	-20.7
  Non-Metallic Mineral Products	-9.1	-8.1
  Paper and Paper Products	-10.2	9.4
  Textiles	-1.4	-9.2
  Leather Products*	-16.0	-22.4
  Furniture and Fixtures	3.3	5.3

  TABLE 2-A. VALUE OF NET SALES, January 2006 - February 2006 (concluded)
  (1994=100)

  Gainers	Month-on-Month Growth (percent)
  	February 2006	January 2006 (revised)
  Textiles	29.9	-6.3
  Beverages	10.3	-24.7
  Footwear and Wearing Apparel*	9.2	-28.0
  Miscellaneous Manufactures	29.0	-17.7
  Basic Metals	5.0	-5.4
  Electrical Machinery	1.2	-16.1
  Losers	Month-on-Month Growth (percent)
  	February 2006	January 2006 (revised)
  Petroleum Products	-9.8	-16.6
  Food Manufacturing	-4.5	-9.0
  Transport Equipment	-7.9	-1.5
  Non-Metallic Mineral Products	-10.8	2.6
  Publishing and Printing*	-24.8	50.8
  Tobacco	-9.8	-10.7
  Chemical Products	-1.8	-4.6
  Wood and Wood Products	-12.7	-0.8
  Machinery Excluding Electrical*	-9.9	-48.5
  Paper and Paper Products	-3.5	4.1
  Rubber Products	-9.6	40.6
  Fabricated Metal Products*	-0.6	-46.2
  Furniture and Fixtures	-0.8	-22.0
  Leather Products*	-1.3	-0.2

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

  Sectors are ranked according to their contribution to the overall 1994-based February 2006 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 2006 - February 2006
  (1994=100)

  Gainers	Year-on-Year Growth (percent)
  	February 2006	January 2006 (revised)
  Food Manufacturing	21.5	27.5
  Tobacco	99.8	181.9
  Basic Metals	19.5	2.1
  Petroleum Products	6.9	18.0
  Publishing and Printing*	16.5	45.5
  Fabricated Metal Products*	8.1	16.6
  Rubber Products	8.9	11.3
  Beverages	0.4	5.8
  Furniture and Fixtures	3.1	11.8
  Miscellaneous Manufactures	0.9	-18.3
  Losers	Year-on-Year Growth (percent)
  	February 2006	January 2006 (revised)
  Electrical Machinery	-44.0	-48.6
  Machinery Excluding Electrical*	-68.5	-75.8
  Footwear and Wearing Apparel*	-17.1	-28.8
  Non-Metallic Mineral Products	-19.1	-17.4
  Wood and Wood Products	-59.6	-56.7
  Transport Equipment	-8.5	15.9
  Chemical Products	-14.5	0.5
  Paper and Paper Products	-0.8	8.8
  Textiles	-2.4	-10.2
  Leather Products*	-32.4	-39.0

  TABLE 2-B. VOLUME OF NET SALES, January 2006 - February 2006 (concluded)
  (1994=100)

  Gainers	Month-on-Month Growth (percent)
  	February 2006	January 2006 (revised)
  Textiles	29.8	-6.1
  Beverages	10.3	-24.6
  Footwear and Wearing Apparel*	9.2	-29.3
  Miscellaneous Manufactures	30.3	-17.6
  Basic Metals	4.9	-4.8
  Electrical Machinery	2.5	-33.9
  Food Manufacturing	0.1	-14.7
  Furniture and Fixtures	0.1	-20.8
  Losers	Month-on-Month Growth (percent)
  	February 2006	January 2006 (revised)
  Petroleum Products	-10.0	-17.3
  Transport Equipment	-8.1	-3.2
  Non-Metallic Mineral Products	-12.4	5.4
  Chemical Products	-3.2	-4.8
  Publishing and Printing*	-24.8	58.4
  Tobacco	-9.8	-15.8
  Machinery Excluding Electrical*	-9.8	-54.1
  Wood and Wood Products	-12.3	-4.0
  Rubber Products	-9.6	40.6
  Paper and Paper Products	-3.0	-1.7
  Fabricated Metal Products*	-1.8	-50.2
  Leather Products*	-1.3	-19.5

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

  Sectors are ranked according to their contribution to the overall 1994-based February 2006 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.

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  Source:   National Statistics Office
                   Manila, Philippines