r -revised

·  Value of Production Index (VaPI) continues to improve

The Value of Production Index (VaPI) for the manufacturing industry on a year-on-year basis grew by 7.2 percent in July 2004, according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). Nine (9) sectors posted double-digit increases, as follows: non-metallic mineral products, fabricated metal products, rubber products, transport equipment, publishing and printing, petroleum products, food manufacturing, furniture and fixtures and beverage. Refer to Tables 1-A and 1.

On the other hand, VaPI on a month-on-month basis declined by 0.9 percent in July 2004. Sectors that significantly contributed to the decrease were machinery excluding electrical, beverage, leather products and electrical machinery. Refer to Tables 1-A and 1.

·  Volume of Production Index (VoPI) decreases at slower rate

Volume of Production Index (VoPI) dropped slightly by 0.4 percent in July 2004 compared to a year ago figure. Though eight (8) sectors posted double-digit increases, this was upset by the double-digit decreases in the following sectors: leather products, footwear and wearing apparel, basic metals, tobacco, machinery excluding electrical and petroleum products.Refer to Tables 1-B and 2.

Similarly, VoPI on a month-on-month basis fell by 2.2 percent in July 2004. Sectors that exhibited double-digit decreases were the following: machinery excluding electrical, beverage, electrical machinery, leather products andchemical products. Refer to Tables 1-B and 2.

·  Value of Net Sales continues upbeat trend

On a year-on-year basis, Value of Net Sales increased by 9.7 percent in July 2004 compared to the previous months (revised) growth rate of 12.8 percent. Seven (7) sectors posted double-digit increases, as follows: rubber products, basic metals, transport equipment, electrical machinery, beverage, textile basic metals, rubber products, electrical machinery, textile, non-metallic mineral products, transport equipment and non-metallic mineral products. Refer to Tables 2-A and 3.

On a month-on-month basis, Value of Net Sales slipped by 1.2 percent in July 2004. Sectors with double-digit decreases were machinery excluding electrical, beverage, and tobacco. Refer to Tables 2-A and 3.

·  Volume of Net Sales slumps

Volume of Net Sales, on a year-on-year basis, tumbled by 2.6 percent in July 2004. Sectors that registered double-digit decreases were the following: footwear and wearing apparel, publishing and printing, petroleum products electrical machinery, rubber products, furniture and fixtures, beverage and machinery excluding electrical. Refer to Tables 2-B and 4.

Likewise, Volume of Net Sales on a month-on-month basis dipped by 2.3 percent in July 2004. This was due to the double-digit decreases observed in the following sectors: machinery excluding electrical, beverage, tobacco and chemical products. Refer to Tables 2-B and 4.

·  Producers Price Index (PPI) keeps upward trend

The Producers Price Index (PPI) for total manufacturing on a year-on-year basis picked up by 7.6 percent in July 2004. Double-digit increases were observed in the following sectors: footwear and wearing apparel, basic metals, petroleum products, food manufacturing, textile and non-metallic mineral products. Refer to Table 5..

Likewise, PPI on a monthly basis increased by 1.3 percent in July 2004. This can be attributed to the significant upward movement in prices observed in the following sectors: electrical machinery, miscellaneous manufactures, fabricated metal products, non-metallic mineral products, textile, furniture and fixtures and petroleum products Refer to Table 5.

·  Capacity Utilization

Average capacity utilization in July 2004 for total manufacturing was estimated at 79.7 percent. Sectors that posted more than 80% capacity utilization rates were the following: machinery excluding electrical, leather products, miscellaneous manufactures, petroleum products, electrical machinery, paper and paper products, rubber products, basic metals and food manufacturing. Refer to Table 6..

The proportion of establishments that operated at full capacity (90%-100%) in July 2004 was 15.1 percent. More than half or 51.7 percent of the establishments operated at 70%-89% capacity and 33.2 percent of the establishments operated below 70% capacity.

Distribution of Key Manufacturing Establishments by Capacity Utilization
Total Manufacturing, July 2004
(In percent)

·  Response Rate

The response rate for July 2004 is 85.9 percent, which corresponds to the retrieval of 462 sample establishments reports. Refer to Table 7.

Response Rates for Total Manufacturing
(In percent)

·  Technical Notes

Starting 2004, weights for the Producers 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.
 

TABLE 1-A. VALUE OF PRODUCTION INDEX, June-July 2004
(1994 =100)

TABLE 1-A. VALUE OF PRODUCTION INDEX, June - July 2004
(concluded)
(1994=100)

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

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

TABLE 1-B. VOLUME OF PRODUCTION INDEX, June - July 2004
(concluded)
(1994=100)

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

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

TABLE 2-A. VALUE OF NET SALES, June - July 2004 (concluded)
(1994=100)

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

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

TABLE 2-B. VOLUME OF NET SALES, June - July 2004 (concluded)
(1994=100)

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

Sectors are ranked according to their contribution to the overall 1994-based July 2004 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.

Source:   National Statistics Office
                 Manila, Philippines