·  Value of Production remains at two-digit decline

Value of Production Index (VaPI) for the manufacturing industry recorded a slower year-on-year decline of 18.9 percent in February 2009, according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). Sixteen out of 20 major sectors reported decreases, with two-digit decline observed in the following:petroleum products, leather products, basic metals, miscellaneous manufactures, footwear and wearing apparel, publishing and printing, transport equipment, machinery except electrical, tobacco products, electrical machinery, paper and paper products, and furniture and fixtures. Refer to Tables 1-A and 1.

However, on a month-on-month comparison, VaPI grew by 3.3 percent from the two-digit decrease of 27.8 percent recorded in January 2009. This was attributed to the increases in production values reported by eleven major sectors, led by petroleum products (21.9%), fabricated metal products (12.1%), and basic metals (11.6%).Refer to Tables 1-A and 1.

·  Volume of Production continues to decelerate at a slower rate

Volume of Production Index (VoPI) decelerated as it posted a slower decline of 21.1 percent compared with the year-ago figure. Eighteen major sectors exhibited reduction in factory output, with two-digit decreases reported by the following major sectors:petroleum products, leather products, footwear and wearing apparel, basic metals, miscellaneous manufactures, transport equipment, machinery except electrical, publishing and printing, electrical machinery, paper and paper products, textiles, tobacco products, fabricated metal products, furniture and fixtures, food manufacturing, and chemical products. Refer to Tables 1-B and 2.

On a month-on-month basis, VoPI posted growth of 3.4 percent in February 2009 from the previous month's two-digit decrease of 23.8 percent. This was due to the two-digit increments in output noted in the following major sectors: petroleum products, basic metals, furniture and fixtures, and fabricated metal products. Refer to Tables 1-B and 2.

·  Value of Net Sales still on the downtrend in February 2009

On a year-on-year basis, Value of Net Sales Index (VaNSI) went down by 20.7 percent in February 2009. Among the 16 major sectors that reported decreases in sales, 11 sectors significantly contributed to the decline, namely: leather products, petroleum products, basic metals, machinery except electrical, furniture and fixtures, miscellaneous manufactures, textiles, electrical machinery, transport equipment, paper and paper products, and rubber and plastic products. Refer to Tables 2-A and 3.

VaNSI, on a monthly basis, fell by 4.3 percent in February 2009. This was due to the decreases observed in 14 major sectors, led by leather products, petroleum products, machinery except electrical, miscellaneous manufactures, and paper and paper products. Refer to Tables 2-A and 3.

·  Volume of Net Sales also decreases

On a year-on-year comparison, Volume of Net Sales Index (VoNSI) dropped by 22.8 percent in February 2009. This was brought about by the poor performances of all the major sectors except for non-metallic mineral products which reported an increase of 9.8 percent in sales. Refer to Tables 2-B and 4.

VoNSI, registered a month-on-month decline of 4.1 percent in February 2009. Fourteen major sectors reported declines in sales, led by the following: leather products, petroleum products, machinery except electrical, and paper and paper products. Refer to Tables 2-B and 4.

·  Capacity Utilization

Average capacity utilization in February 2009 for total manufacturing was estimated at 77.7 percent. Only seven major sectors registered capacity utilization rates of 80% and more, namely: basic metals, food manufacturing, paper and paper products, leather products, electrical machinery, miscellaneous manufactures, andchemical products. Refer to Table 6.

The proportion of establishments that operated at full capacity (90% to 100%) was 11.7 percent in February 2009. About 61.7 percent of the establishments operated at 70% to 89% capacity while 26.6 percent of the establishments operated below 70% capacity.

·  Response Rates

The response rates for the February 2009 MISSI and PPS are 87.0 percent and 91.9 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 with the amended 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

a/ - less than 0.1 percent increase

b/ - less than 0.1 percent decrease

Sectors are ranked according to their contribution to the overall 2000-based February 2009 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 February 2009 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

b/ - less than 0.1 percent decrease

Sectors are ranked according to their contribution to the overall 2000-based February 2009 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 February 2009 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