• Value of Production further accelerates in February 2012

Value of Production Index (VaPI) for total manufacturing inched up to 8.4 percent in February 2012, according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). Double-digit increases in VaPI were registered in the following nine major sectors: footwear and wearing apparel (74.1%), furniture and fixtures (66.2%), tobacco products (39.0%), petroleum products (20.5%), food manufacturing (20.1%), beverages (17.0%), non-metallic mineral products (16.1%), machinery except electrical (11.7%) and chemical products (10.5%). Refer to Tables 1-A and 1.

On a monthly basis, VaPI also grew by 5.1 percent in February 2012. Major sectors that posted double-digit increases were the following: tobacco products (27.6%), transport equipment (17.8%), footwear and wearing apparel (13.5%), chemical products (12.8%), non-metallic mineral products (12.8%) and furniture and fixtures (11.7%). Refer to Tables 1-A and 1.

• Volume of Production likewise grows in February 2012.

Volume of Production Index (VoPI) continued to accelerate as it registered an annual increment of 5.1 percent in February 2012. Thirteen major sectors reported increases in VoPI led by furniture and fixtures, with a three-digit growth of 167.0 percent. Other major sectors that significantly contributed to the growth were footwear and wearing apparel (73.2%), tobacco products (40.1%), non-metallic mineral products (21.9%), beverages (15.2%), wood and wood products (11.9%) and food manufacturing (10.4%). Refer to Tables 1-B and 2.

On a month-on-month comparison, VoPI exhibited an increment of 4.7 percent in February 2012 from a decline of 7.2 percent in January 2012. Six of the 13 major sectors that reported double-digit increases were as follows: tobacco products (27.6%), furniture and fixtures (19.1%), transport equipment (18.4%), chemical products (12.9%), footwear and wearing apparel (12.4%) and non-metallic mineral products (11.1%). Refer to Tables 1-B and 2.

• Value of Net Sales exhibits negative rate in February 2012

   

On a year-on-year basis, Value of Net Sales Index (VaNSI) reflected a slower decline of 0.6 percent from a positive rate of 4.6 percent in January 2012. Among the eight major sectors that posted decreases in VaNSI, six major sectors registered double-digit decreases, namely: basic metals (-50.9%), miscellaneous manufactures (-28.7%), textiles (-19.5%), furniture and fixtures (-18.0%), leather products (-15.7%) and paper and paper products (-12.8%). Refer to Tables 2-A and 3.

However, on a month-on-month basis, VaNSI moved up by 2.4 percent in February 2012. This was attributed to two major sectors, namely: transport equipment (16.4%) and footwear and wearing apparel (15.9%). Refer to Tables 2-A and 3.

• Volume of Net Sales likewise declines

Volume of Net Sales Index (VoNSI) decreased by 3.6 percent in February 2012. Double-digit decreases were observed in the following major sectors: basic metals (-49.2%), miscellaneous manufactures (-23.7%), textiles (-18.0%), leather products (-12.2%) and paper and paper products (-11.8%). Refer to Tables 2-B and 4.

On a month-on-month change, VoNSI recovered as it posted an increase of 2.0 percent in February 2012. This was due to the double-digit increases in VoNSI noted in transport equipment (17.1%) and footwear and wearing apparel (14.8%) industry sectors. Refer to Tables 2-B and 4.

• Capacity Utilization in February 2012

Average capacity utilization in February 2012 for total manufacturing stood at 83.3 percent. Ten of the 20 major sectors registered capacity utilization rates of more than 80 percent, namely: petroleum products (87.6%), food manufacturing (86.9%), basic metals (86.7%), electrical machinery (84.6%), non-metallic mineral products (84.3%), rubber and plastic products (83.9%), chemical products (83.4%), machinery except electrical (82.5%), miscellaneous manufactures (81.9%) and paper and paper products (80.2%). Refer to Table 6.

The proportion of establishments that operated at full capacity (90% to 100%) was 20.3 percent in February 2012. About 55.5 percent of the establishments operated at 70% to 89% capacity while 24.2 percent of the establishments operated below 70% capacity.

TECHNICAL NOTES

• Introduction

  The Monthly Integrated of Selected Industries (MISSI) is one of the designated statistical activities undertaken by the National Statistics Office to provide 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 will be 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:

  

  

  

  

  

  

  

  

  

• 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.

   

   

  1994 PSIC CODE	INDUSTRY DESCRIPTION
  15 except 155	Food Manufacturing*
  155	Beverages
  16	Tobacco products
  17	Textiles*
  18,174 and 192	Footwear and wearing apparel
  191	Leather products
  20	Wood and wood products*
  21	Paper and paper products
  22	Publishing and printing
  23	Petroleum products*
  24	Chemical products*
  25	Rubber and plastic products*
  26	Non-metallic mineral products*
  27	Basic metals*
  28	Fabricated metal products
  29 and 30	Machinery except electrical*
  31 and 32	Electrical machinery*
  34 and 35	Transport equipment
  36	Furniture and fixtures
  33, 37 and 39	Miscellaneous manufactures

                                               Note: * - Major sectors categorized into sub-sectors

   

• Response Rate

  The response rates for the February 2012 MISSI and PPS are 78.5 percent and 87.6 percent, respectively. Refer to Tables 7 and 8