• Value of Production steps up in January 2012

  Value of Production Index (VaPI) for total manufacturing reflected a year-on-year increment of 2.6 percent in January 2012, after registering declines in the last 3 months of 2011, according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). Sectors that mainly influenced the increase were the following: furniture and fixtures (48.3%), publishing and printing (20.9%), footwear and wearing apparel (16.6%), petroleum products (16.1%) and food manufacturing (12.2%). Refer to Tables 1-A and 1.

  On a month-on-month comparison, however, VaPI dropped to 4.7 percent in January 2012. This was attributed to the diminished production values of tobacco products (-44.6%), publishing and printing (-21.1%), chemical products (-16.2%), beverages (13.5%) and non-metallic mineral products (-10.1%). Refer to Tables 1-A and 1.

• Volume of Production also recovers in January 2012.

  Volume of Production Index (VoPI) likewise recorded an annual growth posting slightly to 0.2 percent in January 2012. This was accounted mainly by the expansion in production output of furniture and fixtures, with three-digit growth of 109.9 percent. Other major sectors that significantly contributed to the growth were publishing and printing (20.9%), footwear and wearing apparel (16.2%) and wood and wood products (11.4%). Refer to Tables 1-B and 2.

  VoPI, on a monthly basis, exhibited a decrement of 7.8 percent in January 2012 compared with 1.2 percent increase recorded in the previous month. Seven of the 13 major sectors reported double-digit declines as follows: tobacco products (-44.0%), publishing and printing (-21.1%), chemical products (-18.9%), food manufacturing (-16.1%), beverages (-14.0%), rubber and plastic products (-12.3%) and machinery except electrical (-11.1%). Refer to Tables 1-B and 2.

• Value of Net Sales continues to grow in January 2012

  Value of Net Sales Index (VaNSI) continues to gain as it posted an annual growth of 1.6 percent in January 2012. Among the 10 major sectors reporting increases in VaNSI, five (5) major sectors significantly contributed to the growth, namely: petroleum products (26.9%), wood and wood products (21.0%), non-metallic mineral products (17.4%), publishing and printing (17.0%) and rubber and plastic products (13.2%). Refer to Tables 2-A and 3.

  On a month-on-month basis, VaNSI went down by 9.2 percent in January 2012. This was accounted for by nine (9) major sectors which recorded decline in VaNSI, offsetting the increases reported by 11 major sectors. Refer to Tables 2-A and 3.

• Volume of Net Sales declines

  Volume of Net Sales Index (VoNSI) declined to 0.7 percent in January 2012. Significant drops in VoNSI were noted in the following major sectors: basic metals (-21.0%), footwear and wearing apparel (-15.0%) and transport equipment (-11.7%). Refer to Tables 2-B and 4.

  VoNSI, likewise, recorded a month-on-month decrease of 12.1 percent in January 2012. Five major sectors that registered double-digit decreases in VoNSI were as follows: basic metals (-27.7%), food manufacturing (-27.2%), chemical products (-17.9%), beverages (-15.3%) and publishing and printing (-10.4%). Refer to Tables 2-B and 4.

• Capacity Utilization in January 2012

  Average capacity utilization in January 2012 for total manufacturing stood at 83.0 percent. Ten of the 20 major sectors registered capacity utilization rates of more than 80 percent, namely: basic metals (87.0%), petroleum products (86.9%), food manufacturing (86.2%), electrical machinery (84.6%), non-metallic mineral products (83.7%), rubber and plastic products (83.2%), chemical products (82.7%), paper and paper products (82.6%), machinery except electrical (82.2%) and miscellaneous manufactures (81.8%). Refer to Table 6.

  The proportion of establishments that operated at full capacity (90% to 100%) was 18.2 percent in January 2012. About 59.1 percent of the establishments operated at 70% to 89% capacity while 22.7 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.

   

  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 and 39	Miscellaneous manufactures

                                               Note: * - Major sectors categorized into sub-sectors

   

• Response Rate

  The response rates for the January 2012 MISSI and PPS are 77.3 percent and 87.0 percent, respectively. Refer to Tables 7 and 8