·  Value of Production Index (VaPI) moves up further

Value of Production Index (VaPI) of the manufacturing industry exhibited a 16.1 percent mark-up in January 2003 compared with year ago figure, according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). This was brought about by basic metals which expanded by 128.6 percent, followed by other sectors which also posted double-digit increases: wood and wood products, footwear and wearing apparel, machinery excluding electrical, petroleum products, textile, food manufacturing, beverage, furniture and fixtures and fabricated metal products (see Table 1-A).

On a month-on-month basis, VaPI registered an increase of 1.6 percent. This was due to the growth of the following sectors: leather products, basic metals, wood and wood products, publishing and printing and petroleum products (see Table 1-A).

·  Volume of Production Index (VoPI) recovers

Volume of Production Index (VoPI) improved by 4.9 percent on a year-on-year basis, bouncing back from the previous month�s decline of 6.1 percent. The upswing was led by basic metalsand wood and wood products which posted the highest growth among the sectors with 105.0 percent and 82.1 percent, respectively. Other sectors that also registered double-digit increases were machinery excluding electrical, non-metallic mineral products, footwear and wearing apparel, textile, beverage and fabricated metals (see Table 1-B).

On a monthly basis, VoPI continued its slump since November 2002 recording a 1.4 percent drop in January 2003. Sectors that largely contributed to the decline were tobacco, footwear and wearing apparel, beverage and electrical machinery (see Annex 1-B).

·  Value of Net Sales continues its uptrend

Since September 2002, value of net sales registered positive year-on-year increases with a growth of 20.5 percent in January 2003. Significant increments were observed in sixteen (16) sectors withpetroleum products posting the highest increase of 56.3 percent. Other sectors that showed double-digit increases were furniture and fixtures, machinery excluding electrical, fabricated metal products, publishing and printing, food manufacturing, miscellaneous manufactures, textile, chemical products, footwear and wearing apparel, wood and wood products, basic metals and electrical machinery (see Table 2-A).

On the contrary, value of net sales showed a month-on-month downswing of 6.3 percent from an 8.2 percent increase in December 2002. Major contributors to the decrease were beverage, footwear and wearing apparel, food manufacturing, tobacco, transport equipment andbasic metals (see Table 2-A).

·  Net Sales Volume also rises

Net sales volume in January 2003 continued to step up at 8.3 percent over the year ago figure. This was due to the outstanding growth of 56.0 percent posted by wood and wood productssector. Other sectors that registered increases were machinery excluding electrical, fabricated metal products, petroleum products, publishing and printing, non-metallic mineral products, miscellaneous manufactures, furniture and fixtures, textile andfootwear and wearing apparel (see Table 2-B).

However, volume of net sales fell by 9.1 percent on a month-on-month basis from the previous months 6.5 percent growth. Double-digit decreases were observed in the following sectors:footwear and wearing apparel, beverage, food manufacturing, tobacco, transport equipment, basic metals, electrical machinery and textile (see Table 2-B).

·  Producer's Price Index (PPI) increases further

On a year-on-year basis, the Producers Price Index (PPI) for total manufacturing recorded a double-digit increase of 10.6 percent in January 2003. Petroleum products which surged by 22.0 percent led the sectors that reflected double-digit increases. Other sectors contributing to the increase were the following: chemical products, 18.5%; food manufacturing, 16.6%;electrical machinery, 14.3%; rubber products, 12.7%; leather products, 12.4%; basic metals, 11.5% and furniture and fixtures, 10.7%. (see Table 5).

Likewise, PPI on a month-on-month basis for total manufacturing rose by 3.0 percent in January 2003. The top six sectors that posted higher growth rates were leather products, paper and paper products, electrical machinery, chemical products, non-metallic mineral productsand textile (see Table 5).

·  Capacity Utilization

In January 2003, average capacity utilization for total manufacturing was estimated at 77.0 percent. Sectors that posted more than 80% capacity utilization rate were the following:machinery excluding electrical, miscellaneous manufactures, paper and paper productsand petroleum products (see Table 6).

The proportion of responding establishments that operated at full capacity (90%-100%) in January 2003 was 21.7 percent. About 41.3 percent of the responding establishments operated at 70%-89% capacity and 36.9 percent of the establishments operated below 70% capacity.

Distribution Of Key Manufacturing Establishments
by Capacity Utilization
Total Manufacturing, January 2003
(In percent)

                                            Note: Details may not add up to 100 due to rounding.

·  Response Rate

The response rate for January 2003 is 83.0 percent, which corresponds to the retrieval of 443 sample establishments reports (see Table 7).

Response Rates For Total Manufacturing
(In percent)

·  Technical Notes

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, December 2002 - January 2003
(1994 =100)

Table 1-A. Value Of Production Index, December 2002 - January 2003(concluded)
(1994=100)

Note: * - new sectors in the 1994-based series 
Sectors are ranked according to their contribution to the overall 1994-based January 2003 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, December 2002 - January 2003<

TABLE 1-B. Volume Of Production Index, December 2002 - January (concluded)
(1994=100)

Note: * - new sectors in the 1994-based series 
Sectors are ranked according to their contribution to the overall 1994-based January 2003 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, December 2002 - January 2003
(1994=100)

Table 2-A. Value Of Net Sales, December 2002 - January 2003 (concluded)
(1994=100)

Note: * - new sectors in the 1994-based series 
Sectors are ranked according to their contribution to the overall 1994-based January 2003 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, December 2002 - January 2003
(1994=100)

Table 2-B. Volume Of Net Sales, December 2002 - January 2003(concluded)
(1994=100)

Note: * - new sectors in the 1994-based series 
Sectors are ranked according to their contribution to the overall 1994-based January 2003 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