r -revised

·  Value of Production Index (VaPI) rises in January 2004

Value of Production Index (VaPI) of the manufacturing industry grew by 4.4 percent in January 2004 compared with a year-ago figure, according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). Sectors observed to have boosted production were the following: machinery excluding electrical, basic metals, publishing and printing, miscellaneous manufactures and beverage (see Table 1-A).

On the other hand, VaPI on a monthly basis declined by 1.1 percent in January this year. Double-digit decreases were noted in three sectors, namely: fabricated metal products, beverage and chemical products (see Table 1-A).

·  Volume of Production Index (VoPI) drops

Volume of Production Index (VoPI) went down by 0.2 percent in January 2004 compared with a year ago figure. Sectors that contributed to the slowdown were the following: leather products, tobacco, footwear and wearing apparel, petroleum products, transport equipments and wood and wood products (see Table 1-B).

Likewise, VoPI on a month-on-month basis slumped by 0.3 percent in January 2004. Double-digit decreases were reported by the following sectors: fabricated metals, tobacco, footwear and wearing apparel, beverage and chemical products (see Annex 1-B).

·  Value of Net Sales keeps upbeat trend

Year-on-Year growth of Value of Net Sales rose to 10.1 percent in January 2004. Significant increments were reported by the following sectors: basic metals, machinery excluding electrical, rubber products, textile, petroleum products, electrical machinery, publishing and printing and non-metallic mineral products (see Table 2-A).

However, Value of Net Sales on a monthly basis plunged by 8.9 percent in January 2004 compared to the previous month's (revised) increase of 7.8 percent. This was due to the weak performance observed in the following sectors: fabricated metal products, beverage, tobacco, food manufacturing, footwear and wearing apparel, miscellaneous manufactures, chemical products and transport equipments (see Table 2-A).

·  Volume of Net Sales picks up

On a year-on-year basis, Net Sales Volume in January 2004 accelerated by 2.7 percent. Major sectors that contributed to the increase were the following: machinery excluding electrical, basic metals, rubber products, and publishing and printing (see Table 2-B).

Meanwhile, Volume of Net Sales on a month-on-month basis was down by 10.1 percent in January 2004. This was attributed to the poor sales in the following sectors: fabricated metal products, beverage, tobacco, food manufacturing, footwear and wearing apparel, miscellaneous manufactures, transport equipment and chemical products (see Table 2-B).

·  Producer's Price Index (PPI) continues increasing trend

The Producer's Price Index (PPI) for total manufacturing on a year-on-year comparison managed to grow at 4.6 percent in January 2004, but lower than the 6.8 percent growth exhibited in December 2003. Nonmetallic mineral products led the sectors that posted double-digit increases with 16.3 percent. Other sectors with double-digit increments were the following: footwear and wearing apparel, petroleum products and electrical machinery (see Table 5).

On a monthly basis, PPI for total manufacturing declined by 0.8 percent in January 2004. The top five sectors that contributed to the decrease were the following: wood and wood products, paper and paper products, machinery excluding electrical, furniture and fixtures and chemical products (see Table 5).

·  Capacity Utilization

Average capacity utilization in January 2004 for total manufacturing was estimated at 78.0 percent. Sectors that posted more than 80% capacity utilization rate were the following: machinery excluding electrical, basic metals, miscellaneous manufactures, electrical machinery, paper and paper products, petroleum products and rubber products (see Table 6).

The proportion of responding establishments that operated at full capacity (90%-100%) in January 2004 was 13.7 percent. About 48.5 percent of the responding establishments operated at 70%-89% capacity and 37.8 percent of the establishments operated below 70% capacity.

Distribution of Key Manufacturing Establishments by Capacity Utilization
Total Manufacturing, January 2004
(In percent)

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

·  Response Rate

The response rate for January 2004 is 88.1 percent, which corresponds to the retrieval of 459 sample establishments' reports (see Table 7).

Response Rates for Total Manufacturing
(In percent)

·  Technical Notes

Starting 2004, weights for the Producer's Price Index (PPI) will be 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.

Data of nonresponding 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 2003 - January 2004
(1994 =100)

TABLE 1-A. VALUE OF PRODUCTION INDEX, December 2003 - January 2004
(concluded)
(1994=100)

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

Sectors are ranked according to their contribution to the overall 1994-based January 2004 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 2003 - January 2004
(1994 = 100)

TABLE 1-B. VOLUME OF PRODUCTION INDEX, December 2003 - January 2004
(concluded)
(1994=100)

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

Sectors are ranked according to their contribution to the overall 1994-based January 2004 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 2003 - January 2004
(1994=100)

TABLE 2-A. VALUE OF NET SALES, December 2003 - January 2004 (concluded)
(1994=100)

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

Sectors are ranked according to their contribution to the overall 1994-based January 2004 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 2003 - January 2004
(1994=100)

TABLE 2-B. VOLUME OF NET SALES, December 2003 - January 2004 (concluded)
(1994=100)

Note: * - new sectors in the 1994-based series
 
1/ - Less than 0.1 percent decrease.

Sectors are ranked according to their contribution to the overall 1994-based January 2004 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.

Source:    National Statistics Office
                 Manila, Philippines