·  Value of Production falls at two-digit in January 2009

Value of Production Index (VaPI) for the manufacturing industry continued its downtrend as it dropped by 16.8 percent in January 2009, compared with the year-ago figure, according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). This was brought about by the sluggish performance in production exhibited by 18 major sectors and with two-digit declines observed in the following:petroleum products, leather products, basic metals, tobacco products, miscellaneous manufactures, furniture and fixtures, paper and paper products, textiles, electrical machinery, publishing and printing, transport equipment, footwear and wearing apparel, and machinery except electrical. However, positive growths in VaPI were observed for the non-metallic mineral products andbeverages industries>. Refer to Tables 1-A and 1.

VaPI, on a month-on-month basis, decelerated by 24.2 percent in January 2009. This was due to the significant decreases reported by the following major sectors:petroleum products, food manufacturing, leather products, tobacco products, chemical products, basic metals, electrical machinery, and machinery except electrical. Refer to Tables 1-A and 1.

·  Volume of Production also posts a two-digit decline

On a yearly comparison, the Volume of Production Index (VoPI) likewise, recorded a two-digit decrease of 19.9 percent in January 2009. Eighteen (18) of the 20 major sectors exhibited decreases in production output, with two-digit decreases reported by the following major sectors: petroleum products, leather products, basic metals, tobacco products, miscellaneous manufactures, furniture and fixtures, paper and paper products, textiles, electrical machinery, footwear and wearing apparel, transport equipment, fabricated metal products, publishing and printing, machinery except electrical, and chemical products. Refer to Tables 1-B and 2.

VoPI, on a monthly comparison, posted a two-digit drop of 22.4 percent in January 2009. Sixteen major sectors accounted for the declines in factory output led by the following: petroleum products, food manufacturing, leather products, tobacco products, chemical products, basic metals, and electrical machinery. Refer to Tables 1-B and 2.

Value of Net Sales decelerates at a slower rate

Value of Net Sales Index (VaNSI), on a year-on-year basis, continued its downtrend at a slower rate of 14.7 percent in January 2009. Fifteen major sectors reported decreases in sales value, led by furniture and fixtures, with a decline of 39.4 percent. Other sectors that significantly contributed to the decrease were the following: textiles, leather products, petroleum products, basic metals, paper and paper products, tobacco products, miscellaneous manufactures, transport equipment, electrical machinery, and food manufacturing. Refer to Tables 2-A and 3.

On a monthly basis, VaNSI went down by 7.2 percent in January 2009. This was due to the decline observed in 11 major sectors, with two-digit decreases observed in the following: tobacco products, transport equipment, machinery except electrical, beverages, and petroleum products. Refer to Tables 2-A and 3.

·  Volume of Net Sales also on the downtrend

Volume of Net Sales Index (VoNSI), on a year-on-year basis, decelerated posting a two-digit declines of 17.7 percent in January 2009. The decline was exhibited by 17 major sectors, with two-digit decreases observed in the following: textiles, furniture and fixtures, leather products, basic metals, paper and paper products, electrical machinery, transport equipment, tobacco products, miscellaneous manufactures, food manufacturing, and machinery except electrical. Refer to Tables 2-B and 4.

VoNSI, on a month-on-month basis, dropped at 5.0 percent in January 2009. Significant contractions in sales volume were noted in the following major sectors:transport equipment, tobacco products, beverages, furniture and fixtures, andmachinery except electrical. Refer to Tables 2-B and 4.

·  Capacity Utilization

Average capacity utilization in January 2009 for total manufacturing was estimated at 77.5 percent. Eight major sectors that registered capacity utilization rates of 80% and more were the following: basic metals, food manufacturing, leather products, paper and paper products, miscellaneous manufactures, electrical machinery, chemical products, and rubber and plastic products. Refer to Table 6.

The proportion of establishments that operated at full capacity (90% to 100%) was 11.9 percent in December 2008. More than half or 60.2 percent of the establishments operated at 70% to 89% capacity while 27.9 percent of the establishments operated below 70% capacity.

·  Response Rates

The response rates for the January 2009 MISSI and PPS are 83.1 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.

b/ - less than 0.1 percent decrease

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

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

b/ - less than 0.1 percent decrease.

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