·  Value of Production Index (VaPI) jumps in July 2003

Value of Production Index (VaPI) of the manufacturing industry went up by 12.9 percent in July 2003 compared with year-ago figure, according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). Fifteen (15) sectors which exhibited double-digit increases largely contributed to the expansion in production: basic metals, machinery excluding electrical, wood and wood products, miscellaneous manufactures, petroleum products, textile, nonmetallic mineral products, chemical products, food manufacturing and rubber products (see Table 1-A).

On a month-on-month comparison, VaPI recovered with a 1.9 percent improvement in July 2003 from its (revised) 0.6 percent drop in June 2003. Only four (4) sectors posted double-digit increases, as follows: leather products, tobacco, electrical machinery and rubber products (see Table 1-A).

·  Volume of Production Index (VoPI) picks up

Volume of Production Index (VoPI) stepped up with a growth of 4.4 percent compared with year-ago figure from a (revised) 1.5 percent decrease in June 2003. This was brought about by basic metals which expanded by 130.8 percent, followed by other sectors which also posted significant increases, namely: wood and wood products, machinery excluding electrical, rubber products, textile, nonmetallic mineral products and miscellaneous manufactures (see Table 1-B).

On a monthly basis, VoPI grew by a slim 0.7 percent in July 2003. Major contributors to the increase were leather products, tobacco and rubber products (see Annex 1-B).

·  Value of Net Sales gains further

Value of Net Sales in July 2003 continued to pick up at 9.4 percent over the year ago figure. Sectors significantly contributing to the improved sales performance were the following: machinery excluding electrical, basic metals, textile, petroleum products, nonmetallic mineral products, food manufacturing, footwear and wearing apparel and chemical products (see Table 2-A).

On a month-on-month basis, Value of Net Sales likewise increased by 0.8 percent in July 2003. Significant increments were observed in the following sectors: electrical machinery, basic metals and textile (see Table 2-A).

·  Net Sales Volume moves up at slower rate

Net Sales Volume grew at a slower rate of 0.6 percent in July 2003 compared to year-ago figure. Sectors that showed double-digit increases were machinery excluding electrical, wood and wood products, textile, basic metals and nonmetallic mineral products(see Table 2-B).

Though Volume of Net Sales declined compared to the previous month, the decrease was very minimal. Double-digit increases were reported by sectors: textile, basic metals and electrical machinery. On the other hand, double-digit decreases were exhibited by beverage and footwear and wearing apparel sectors. (see Table 2-B).

·  Producer's Price Index (PPI) shows increase

Producer’s Price Index (PPI) for total manufacturing on a year-on-year basis reflected an increment of 8.2 percent in July 2003. Chemical products led all sectors with an increase of 20.1 percent. Other sectors that posted double-digit increases were: paper and paper products, electrical machinery, petroleum products, footwear and wearing apparel, leather products and (see Table 5).

On a monthly basis, PPI for total manufacturing likewise posted an increase, although at a slower rate of 1.2 percent in July 2003. Sectors that contributed to the increase were: electrical machinery, nonmetallic mineral products, food manufacturing, fabricated metal products, transport equipment and basic metals (see Table 5).

·  Capacity Utilization

Average capacity utilization in July 2003 for total manufacturing was estimated at 78.8 percent. Sectors that posted more than 80% capacity utilization rate were the following: machinery excluding electrical, miscellaneous manufactures, footwear and wearing apparel, electrical machinery, paper and paper products, petroleum products and textile (see Table 6).

The proportion of responding establishments that operated at full capacity (90%-100%) in July 2003 was 15.9 percent. About 48.3 percent of the responding establishments operated at 70%-89% capacity and 35.8 percent of the establishments operated below 70% capacity.

Distribution of Key Manufacturing Establishments
by Capacity Utilization
Total Manufacturing, July 2003
(In percent)

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

·  Response Rate

The response rate for July 2003 is 88.3 percent, which corresponds to the retrieval of 491 sample establishments’ reports (see Table 7).

Response Rates for Total Manufacturing
(In percent)

·  Technical Notes

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, JUNE – JULY 2003
(1994 =100)

TABLE 1-A. VALUE OF PRODUCTION INDEX, JUNE - JULY 2003 (concluded)
(1994=100)

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

Sectors are ranked according to their contribution to the overall 1994-based July 2003 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, JUNE – JULY 2003
(1994 = 100)

TABLE 1-B. VOLUME OF PRODUCTION INDEX, JUNE – JULY 2003
(concluded)
(1994=100)

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

Sectors are ranked according to their contribution to the overall 1994-based July 2003 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, JUNE - JULY 2003
(1994=100)

TABLE 2-A. VALUE OF NET SALES, JUNE – JULY 2003 (concluded)
(1994=100)

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

Sectors are ranked according to their contribution to the overall 1994-based July 2003 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, JUNE – JULY 2003
(1994=100)

TABLE 2-B. VOLUME OF NET SALES, JUNE – JULY 2003(concluded)
(1994=100)

Note: * - new sectors in the 1994-based series
Sectors are ranked according to their contribution to the overall 1994-based July 2003 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