Introduction
These results were based on the interim Monthly Integrated Survey of Selected Industries (MISSI) of the National Statistics Office with the Department of Trade and Industry which will eventually provide flash indicators on the performance of industrial enterprises such as production, sales, employment, compensation, inventory of raw materials and finished products, and capacity utilization. The MISSI is a key feature arising from a Memorandum of Understanding (MOU) forged between the two offices along with the National Statistical Coordination Board, the Federation of Philippine Industries and the Philippine Chamber of Commerce and Industry
This report only covers the value and volume of production and sales, and capacity utilization in the manufacturing sector. The results were based on a sample coverage of 548 manufacturing enterprises throughout the country with a response rate of 81.3 percent.
Executive Summary
Preliminary results of the interim survey for July 1998 showed a decline of 1.0 percent in the value and of 12.1 percent in volume of production over July last year. Decreases were due to the drop in both value and volume of production in transport equipment, wearing apparel, petroleum refineries, beverage, rubber products, and miscellaneous manufactures.
On the other hand, electrical machinery sector remained robust as it posted positive year-on-year growth in both value and volume for seven consecutive months. Other sectors exhibiting positive growth in July of both value and volume were food, furniture & fixtures, textile, and wood & wood products.
Net sales value increased by 3.3 percent over July last year due to the 18.2 percent increase in food and 28.8 percent in wearing apparel. Other sectors posting increases were petroleum products (8.0%), chemicals (10.8%), paper & paper products (24.2%), and textile (12.3%).
Net sales volume on the other hand declined by 5.4 percent due to the drop in sales of 12 out of 16 sectors led by basic metals (-31.3%) and transport equipment (-45.6%).
Reported capacity utilization, which is defined as the ratio of output to the maximum rated capacity of the plant, reflected the slowdown in production where 11 percent of the sample firms reported capacity utilization of less than 50 percent compared to 7 percent in July last year. Moreover, the percentage of sample firms reporting at least 80 percent capacity utilization was down from 46 percent in July 1997 to 40 percent this month, as shown in the table below.
Distribution of Key Enterprise by Capacity Utilization
Percentage Changes in Production and Net Sales of Key Enterprises: Jan 1998 - July 1998
r - revised due to updating of data from late responding establishments.
ANNEX 1-A
VALUE OF PRODUCTION
Year-on-year Year-on-year decreases were observed in 7 out of 16 major sectors which led to a -1.0 percent decline in value of production. Posting the biggest drop among the sectors was transport equipment which declined by -47.0 percent due to low demand. Other sectors that posted year-on-year declines were non-metallic mineral products (-12.9%), rubber (-28.9%), beverage (-14.9%), petroleum products (-1.4%), miscellaneous manufactures (-38.8%), and wearing apparel, (-1.1%). On the other hand, food manufacturing continued to post double-digit increases since early this year, posting a growth of 39.5 percent in July. Increased production in coconut products, vegetable and animal oils and fats, and bakery products contributed significantly to the growth in the food sector. This was followed by electrical machinery (36.1%) due to increased exports; chemicals (10.1%), to increased production of fertilizers, plastic products and cosmetics; wood & wood products (14.8%); basic metals (5.2%); furniture & fixtures (25.2%); paper & paper products (2.6%); and tobacco (4.0%). Month-on-month On a month-on-month basis, the value of production index decreased by -2.1 percent. Nine sectors suffered declines, led by electrical machinery which dropped by -12.3 percent. Other sectors that contributed to the decline were petroleum products (-3.7%), wearing apparel (-11.2%), paper & paper products (-10.8%), wood & wood products (-11.4%), textile (-4.8%), non-metallic mineral products (-4.4%), rubber products (-3.0) and miscellaneous manufactures (-9.6%). On the other hand, seven sectors posted increases led by basic metals (38.0%), chemicals (21.0%), and transport equipment (4.0%).
VALUE OF PRODUCTION INDEX (JULY 1998)
YEAR-ON-YEAR
GAINERS GROWTH (%)
LOSERS
MONTH-ON-MONTH
GAINERS GROWTH (%)
LOSERS
Note: Sectors are ranked according to their contribution to the overall July 1998 growth rate. r - revised due to updating of data from late responding establishments.
ANNEX 1-B
VOLUME OF PRODUCTION
Year-on-year The volume of production index (VoPI) declined by -12.1 percent over that of July 1997. Wearing apparel, which recorded a decrease of 39.1 percent year-on-year growth, along with transport equipment (-54.6%), petroleum refineries (-9.8%) and basic metals (-9.2%), contributed significantly to the downward pull on overall VoPI. On the other hand, leading sectors that registered positive growths were food manufactures (20.8%), electrical machinery (18.5%), and non-metallic mineral products (7.5%). Month-on-month On a monthly basis, nine sectors registered decreases leading to a -1.6 percent drop in VoPI. Electrical machinery recorded the biggest decline of -12.3 percent. Other sectors that significantly contributed to the downward pull on the overall growth were wearing apparel (-11.6%), paper & paper products (-11.9%), and wood & wood products (-11.4%). On the other hand, seven sectors registered increases led by basic metals with a 40.2 percent increase, followed by chemicals (22.9%), non-metallic mineral products (4.1%), and furniture and fixtures (13.7%).
VOLUME OF PRODUCTION INDEX (JULY 1998)
YEAR-ON-YEAR
GAINERS GROWTH (%)
LOSERS
MONTH-ON-MONTH
GAINERS GROWTH (%)
LOSERS
Note: Sectors are ranked according to their contribution to the overall July 1998 growth rate. r - revised due to updating of data from late responding establishments.
ANNEX 2-A
VALUE OF NET SALES
Year-on-year The value of net sales for July 1998 showed an increase of 3.3 percent over July last year. Six out of sixteen sectors posted positive year-on-year growths. These were food manufactures (18.2%), wearing apparel (28.8%), petroleum products (8.0%), chemicals (10.8%), paper & paper products (24.2%), and textile (12.3%). On the other hand, ten sectors posted decreases. Transport equipment posted the biggest drop of -36.6 percent. Other sectors recording declines were: basic metals (-21.8%), non-metallic minerals products (-27.4%), beverage (-34.9%), electrical machinery (-6.0%), wood & wood products (-14.3%), rubber products (-21.8%), tobacco (-24.1%), furniture & fixtures (-7.0%), and miscellaneous manufactures (-3.1%). Month-on-month On a month-on-month basis, the value of net sales grew by 4.1 percent. Food manufacturing posted the biggest growth of 10.4 percent. Other sectors that posted increases were petroleum products (9.9%), wearing apparel (17.6%), paper & paper products (11.6%), electrical machinery (3.0%), chemicals (3.3%) and tobacco (22.0%). On the other hand, the following sectors posted decreases in their month-on-month net sales: wood & wood products (-29.2%), basic metals (-6.6%), rubber products (-13.7%), transport equipment (-4.4%), beverage (-5.5%), furniture & fixtures (-8.7%), miscellaneous manufactures (-10.6%), non-metallic mineral products (-1.1%), and textile (-0.1%).
NET SALES VALUE (JULY 1998)
YEAR-ON-YEAR
GAINERS GROWTH (%)
LOSERS
MONTH-ON-MONTH
GAINERS GROWTH (%)
LOSERS
Note: Sectors are ranked according to their contribution to the overall July 1998 growth rate.
ANNEX 2-B
VOLUME OF NET SALES
Year-on-Year The volume of net sales for July 1998 declined by -5.4 percent over July last year. The negative growth was due to the decline in twelve sectors led by basic metals which posted a decline of -31.3 percent. Transport equipment followed with -45.6 percent, electrical machinery (-18.2%), wearing apparel (-20.6%), beverage (-42.9%), wood and wood products (-24.4%), non-metallic minerals (-23.6%), rubber products (-25.4%), chemicals (-1.5%), miscellaneous manufactures (-19.9%), furniture & fixtures (-11.9%) and tobacco (-27.9%). On the other hand, petroleum products registered the biggest increase of 23.4 percent. Other sectors that posted positive growth were food manufactures (2.3%), paper & paper products (7.2%), and textile (1.9%). Month-on-Month On a month-on-month basis, the volume of net sales increased by 4.9 percent. Petroleum products with a 12.8 percent increase significantly contributed to the overall growth. Food manufactures followed with 10.4 percent growth; wearing apparel (17.1%), chemicals (5.7%), paper and paper products (10.2%), electrical machinery (3.0%), tobacco (21.9%), and non-metallic minerals (1.2%). On the other hand, sectors that posted declines were wood and wood products (-29.2%), transport equipment (-10.3%), basic metals (-3.5%), rubber products (-12.7%), beverage (-5.3%), textile (-1.1%), miscellaneous manufactures (-10.9%) and furniture & fixtures (-8.2%).
NET SALES VOLUME (JULY 1998)
YEAR-ON-YEAR
GAINERS GROWTH (%)
LOSERS
MONTH-ON-MONTH
GAINERS GROWTH (%)
LOSERS
Note: Sectors are ranked according to their contribution to the overall July 1998 growth rate.
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Source: National Statistics Office
