r -revised

• Value of Production Index (VaPI) rises in January 2005
  

  Value of Production Index (VaPI) for the manufacturing industry on a year-on-year basis grew by 15.7 percent in January 2005, according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). Double-digit increases were observed in the following major sectors: furniture and fixtures, publishing and printing, petroleum products, chemical products, leather products, footwear and wearing apparel, electrical machinery, rubber products, beverage, wood and wood products, fabricated metal products, textile and miscellaneous manufactures.Refer to Tables 1-A and 1.

  On the other hand, VaPI on a monthly basis declined by 2.9 percent in January this year. Sectors that significantly contributed to the decrease were: publishing and printing, tobacco, machinery excluding electrical, transport equipment and wood and wood products.Refer to Tables 1-A and 1.

• Volume of Production Index (VoPI) picks up
  

  Volume of Production Index (VoPI) registered a year-on-year increase of 5.5 percent in January 2005. Significant increment of 54.1 percent was brought about by furniture and fixtures. Other sectors which also registered double-digit increases were: publishing and printing, beverage, leather products, rubber products and textile. Refer to Tables 2 and 1-B.

  On a month-on-month basis, VoPI in January 2005 went down by 3.1 percent. Major contributors to the decrease were: tobacco, publishing and printing, machinery excluding electrical, transport equipment and wood and wood products. Refer to Tables 2 and 1-B.

• Value of Net Sales continues to grow
  

  Value of Net Sales in January 2005 continued to climb by 6.2 percent compared to a year ago figure. Major contributors to the increase were: furniture and fixtures, petroleum products, rubber products, basic metals, footwear and wearing apparel, wood and wood products, non-metallic mineral products, publishing and printing, beverage and textile. Refer to Tables 2-A and 3.

  However, Value of Net Sales on a month-on-month basis went down by 15.2 percent in January 2005 compared to previous month (revised) increase of 4.8 percent. Sectors that contributed to the decrease were: tobacco, publishing and printing, electrical machinery, beverage, transport equipment, machinery excluding electrical, food manufacturing and wood and wood products.Refer to Tables 2-A and 3.

• Volume of Net Sales drops
  

  Volume of Net Sales, on a year-on-year basis slipped by 6.2 percent in January 2005. Significant decreases were observed in the following sectors: tobacco, electrical machinery and machinery excluding electrical.Refer to Tables 2-B and 4.

  Likewise, Volume of Net Sales on a monthly basis fell by 15.2 percent compared to previous month growth of 4.0 percent. Seven (7) sectors which significantly contributed to the decrease were: tobacco, publishing and printing, electrical machinery, beverage, transport equipment, machinery excluding electrical and food manufacturing.Refer to Tables 2-B and 4.

Producer's Price Index (PPI) continues to rise

Producer's Price Index (PPI) for total manufacturing registered a year-on-year increase of 9.6 percent in January 2005. This was brought about by significant increases of the following major sectors: petroleum products, tobacco, basic metals, chemical products, footwear and wearing apparel and food manufacturing.Refer to Table 5..

Similarly, PPI on a month-on-month basis gained by 0.2 percent in January 2005 from a previous month increase of 0.4 percent. Sectors that contributed to the increase were tobacco, leather products, transport equipment, basic metals, machinery excluding electrical, food manufacturing and non-metallic mineral products.Refer to Table 5.

•  
• Capacity Utilization
  

  Average capacity utilization in January 2005 for total manufacturing was estimated at 79.8 percent. Sectors with more than 80% capacity utilization rates were the following: machinery excluding electrical, electrical machinery, petroleum products, paper and paper products, miscellaneous manufactures, leather products, basic metals, rubber products, chemical products and food manufacturing.Refer to Table 6..

  In January 2005, the proportion of establishments that operated at full capacity (90%-100%) was 14.2 percent. More than half or 54.6 percent of the establishments operated at 70%-89% capacity and 31.2 percent of the establishments operated below 70% capacity.

  Distribution of Key Manufacturing Establishments by Capacity Utilization
  Total Manufacturing, January 2005
  (In percent)

  Capacity Utilization	Percent Share
  Below 50 percent	6.4
  50 percent - 59 percent	7.6
  60 percent - 69 percent	17.2
  70 percent - 79 percent	23.1
  80 percent - 89 percent	31.5
  90 percent - 100 percent	14.2

• Response Rate
  

  The response rate for January 2005 is 84.8 percent, which corresponds to the retrieval of 442 sample establishments' reports.Refer to Table 7.

  Response Rates for Total Manufacturing
  (In percent)

  January 2005	December 2004           (revised)
  84.8	94.6

• Technical Notes
  

  Starting 2004, weights for the Producer's Price Index (PPI) are 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.Refer to Press Release on Revision of 2004 PPI weights..

  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, December 2004 - January 2005
  (1994 =100)

  Gainers	Year-on-Year Growth (percent)
  	January 2005	December 2004 (revised)
  Petroleum Products	29.9	37.5
  Chemical Products	26.6	14.4
  Electrical Machinery	19.0	19.0
  Food Manufacturing	8.1	11.5
  Footwear and Wearing Apparel*	21.9	18.7
  Beverage	17.3	9.7
  Textile	14.9	9.9
  Basic Metals	6.7	6.7
  Publishing and Printing*	32.0	44.4
  Furniture and Fixtures	53.5	39.5
  Non-Metallic Mineral Products	8.9	27.7
  Fabricated Metal Products*	15.2	-11.7
  Wood and Wood Products	15.6	14.3
  Paper and Paper Products	7.9	11.3
  Paper and Paper Products	7.9	11.3
  Miscellaneous Manufactures	13.5	13.2
  Rubber Products	18.9	48.1
  Leather Products*	23.6	-1.2
  Losers	Year-on-Year Growth (percent)
  	January 2005	December 2004 (revised)
  Machinery Excluding Electrical*	-27.8	7.5
  Tobacco	-10.4	8.1
  Transport Equipment	-3.3	23.0

  TABLE 1-A. VALUE OF PRODUCTION INDEX, December 2004 - January 2005
  (concluded)
  (1994=100)

  Gainers	Month-on-Month Growth (percent)
  	January 2005	December 2004 (revised)
  Electrical Machinery	10.9	-5.3
  Fabricated Metal Products*	5.8	-20.5
  Petroleum Products	0.5	-1.7
  Leather Products*	25.2	-36.1
  Non-Metallic Mineral Products	0.6	0.2
  Furniture and Fixtures	0.2	3.7
  Losers	Month-on-Month Growth (percent)
  	January 2005	December 2004 (revised)
  Food Manufacturing	-6.8	1.2
  Transport Equipment	-14.6	-20.5
  Tobacco	-24.5	23.0
  Beverage	-8.7	7.4
  Footwear and Wearing Apparel*	-8.5	26.6
  Publishing and Printing*	-28.6	21.0
  Machinery Excluding Electrical*	-21.4	-8.4
  Basic Metals	-2.0	0.5
  Wood and Wood Products	-11.0	-6.1
  Paper and Paper Products	-4.9	1.9
  Chemical Products	-0.6	4.5
  Miscellaneous Manufactures	-5.7	-10.5
  Textile	-1.4	-10.0
  Rubber Products	-2.7	-1.5

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

  Sectors are ranked according to their contribution to the overall 1994-based January 2005 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 2004 - January 2005
  (1994 = 100)

  Gainers	Year-on-Year Growth (percent)
  	January 2005	December 2004 (revised)
  Beverage	21.3	17.4
  Electrical Machinery	9.4	9.6
  Chemical Products	7.4	-8.4
  Textile	12.6	10.0
  Publishing and Printing*	27.8	39.8
  Furniture and Fixtures	54.1	45.0
  Footwear and Wearing Apparel*	4.1	-14.7
  Miscellaneous Manufactures	9.9	9.5
  Rubber Products	15.8	44.6
  Fabricated Metal Products*	5.1	-23.9
  Wood and Wood Products	6.8	5.8
  Leather Products*	17.5	-2.6
  Petroleum Products	0.03	-1.0
  Losers	Year-on-Year Growth (percent)
  	January 2005	December 2004 (revised)
  Tobacco	-28.7	-12.3
  Basic Metals	-10.2	-19.8
  Transport Equipment	-9.1	16.6
  Food Manufacturing	-2.7	-1.6
  Machinery Excluding Electrical*	-30.0	7.1
  Non-Metallic Mineral Products	-0.7	14.8
  Paper and Paper Products	-0.6	3.5

  TABLE 1-B. VOLUME OF PRODUCTION INDEX, December 2004 - January 2005
  (concluded)
  (1994=100)

  Gainers	Month-on-Month Growth (percent)
  	January 2005	December 2004 (revised)
  Electrical Machinery	13.9	-4.8
  Petroleum Products	3.9	-0.9
  Fabricated Metal Products*	11.0	-20.5
  Leather Products*	18.2	-36.1
  Furniture and Fixtures	2.1	3.2
  Losers	Month-on-Month Growth (percent)
  	January 2005	December 2004 (revised)
  Food Manufacturing	-8.7	1.1
  Transport Equipment	-17.9	-20.4
  Tobacco	-29.9	23.0
  Footwear and Wearing Apparel *	-9.2	25.0
  Publishing and Printing*	-28.6	21.0
  Basic Metals	-5.6	-0.4
  Machinery Excluding Electrical*	-23.3	-8.4
  Beverage	-5.4	7.4
  Paper and Paper Products	-5.4	0.1
  Wood and Wood Products	-10.0	-7.7
  Textile	-2.2	-9.9
  Miscellaneous Manufactures	-5.1	-10.9
  Non-Metallic Mineral Products	-0.6	1.6
  Rubber Products	-2.7	-1.5
  Chemical Products	-0.1	-2.0

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

  Sectors are ranked according to their contribution to the overall 1994-based January 2005 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 2004 - January 2005
  (1994=100)

  Gainers	Year-on-Year Growth (percent)
  	January 2005	December 2004 (revised)
  Petroleum Products	34.2	19.0
  Basic Metals	27.1	25.8
  Food Manufacturing	8.1	-6.6
  Footwear and Wearing Apparel*	25.2	-6.9
  Chemical Products	8.5	5.6
  Beverage	11.1	2.1
  Non-Metallic Mineral Products	17.3	9.9
  Textile	10.4	15.2
  Furniture and Fixtures	40.5	16.4
  Transport Equipments	4.3	19.4
  Wood and Wood Products	21.2	17.1
  Rubber Products	32.1	34.1
  Publishing and Printing*	12.0	35.5
  Fabricated Metal Products*	6.3	-23.6
  Paper and Paper Products	3.9	13.8
  Miscellaneous Manufactures	5.3	-17.3
  Leather Products*	1.7	141.5
  Losers	Year-on-Year Growth (percent)
  	January 2005	December 2004 (revised)
  Electrical Machinery	-35.7	12.0
  Tobacco	-66.1	31.6
  Machinery Excluding Electrical*	-28.8	-14.2

  TABLE 2-A. VALUE OF NET SALES, December 2004 - January 2005 (concluded)
  (1994=100)

  Gainers	Month-on-Month Growth (percent)
  	January 2005	December 2004 (revised)
  Non-Metallic Mineral Products	15.6	-3.0
  Miscellaneous Manufactures	12.0	-15.6
  Rubber Products	16.6	-10.4
  Basic Metals	1.5	-0.7
  Leather Products*	26.0	-23.3
  Furniture and Fixtures	0.3	7.7
  Losers	Month-on-Month Growth (percent)
  	January 2005	December 2004 (revised)
  Electrical Machinery	-36.0	-11.7
  Food Manufacturing	-15.3	0.4
  Tobacco	-80.3	69.6
  Beverage	-27.0	17.9
  Chemical Products	-9.7	17.8
  Transport Equipment	-18.6	-0.7
  Petroleum Products	-7.2	14.3
  Publishing and Printing*	-36.1	12.4
  Machinery Excluding Electrical*	-15.9	-14.5
  Footwear and Wearing Apparel*	-4.4	6.1
  Fabricated Metal Products*	-6.4	-13.4
  LWood and Wood Products	-10.7	-14.3
  Textile	-3.5	-13.0
  Paper and Paper Products	-2.5	-8.6

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

  Sectors are ranked according to their contribution to the overall 1994-based January 2005 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 2004 - January 2005
  (1994=100)

  Gainers	Year-on-Year Growth (percent)
  	January 2005	December 2004 (revised)
  Beverage	14.9	8.1
  Basic Metals	7.1	-6.0
  Petroleum Products	3.3	-13.8
  Footwear and Wearing Apparel*	6.8	-37.7
  Furniture and Fixtures	41.0	26.2
  Textile	8.1	15.5
  Non-Metallic Mineral Products	7.1	-2.1
  Rubber Products	28.6	28.1
  Wood and Wood Products	11.9	23.3
  Publishing and Printing*	8.3	31.1
  Miscellaneous Manufactures	2.0	-19.9
  Losers	Year-on-Year Growth (percent)
  	January 2005	December 2004 (revised)
  Electrical Machinery	-40.9	2.7
  Tobacco	-73.0	7.4
  Chemical Products	-8.0	-12.5
  Food Manufacturing	-2.8	-19.7
  Machinery Excluding Electrical*	-31.1	-17.5
  Transport Equipments	-1.9	12.1
  Paper and Paper Products	-4.2	10.9
  Fabricated Metal Products*	-3.1	-34.1
  Leather Products*	-3.4	138.1

  TABLE 2-B. VOLUME OF NET SALES, December 2004 - January 2005 (concluded)
  (1994=100)

  Gainers	Month-on-Month Growth (percent)
  	January 2005	December 2004 (revised)
  Non-Metallic Mineral Products	14.2	-1.6
  Miscellaneous Manufactures	12.7	-16.0
  Rubber Products	16.6	-10.4
  Leather Products*	19.0	-23.3
  Furniture and Fixtures	2.1	7.2
  Losers	Month-on-Month Growth (percent)
  	January 2005	December 2004 (revised)
  Electrical Machinery	-34.3	-11.3
  Food Manufacturing	-17.0	0.4
  Tobacco	-81.7	69.6
  Beverage	-24.3	17.9
  Transport Equipment	-21.8	-0.6
  Chemical Products	-9.3	10.5
  Petroleum Products	-4.2	15.2
  Publishing and Printing*	-36.1	12.4
  Machinery Excluding Electrical*	-17.9	-14.5
  Footwear and Wearing Apparel*	-5.1	4.7
  Textile	-4.3	-12.9
  Basic Metals	-2.2	-1.6
  Wood and Wood Products	-9.7	-15.8
  Paper and Paper Products	-2.9	-10.1
  Fabricated Metal Products*	-1.9	-13.4

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

  Sectors are ranked according to their contribution to the overall 1994-based January 2005 growth rate.

  Year-on-year growth ratesare 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