r - revised

• Value of Production Index expands in July 2018

The Value of Production Index (VaPI) for manufacturing continued to increase, registering a two-digit growth of 12.2 percent in July 2018 compared with the level in the same month of the previous year, based on the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). The increase was attributed to the significant improvement in the production performance of 15 major sectors which were the following: petroleum products (66.5%), textiles (39.1%), beverages (38.3%), basic metals (29.9%), miscellaneous manufactures (24.7%), machinery except electrical (19.1%), paper and paper products (15.4%) and electrical machinery (10.3%). In the same period of the previous year, VaPI experienced a negative annual growth of 6.0 percent. Refer to Tables 1-A and 1.

• Volume of Production Index accelerates at a faster pace

The Volume of Production Index (VoPI) accelerated in July 2018 at 11.8 percent compared with the figure during the same month of the previous year. Seven of the 14 major sectors that pulled-up the VoPI were as follows: fabricated metal products (39.7%), petroleum products (38.3%), textiles (33.5%), beverages (21.8%), miscellaneous manufactures (19.9%), basic metals (19.1%) and machinery except electrical (12.1%). In the same period of the previous year, VoPI went down by 5.1 percent. Refer to Tables 1-B and 2.

• Value of Net Sales Index rises

The Value of Net Sales Index (VaNSI) stepped up as it posted an annual growth of 18.1 percent from a negative growth rate of 6.6 percent in the same month of the previous year. Sectors that largely contributed to the growth in VaNSI were the following: tobacco products (46.6%), basic metals (39.8%), miscellaneous manufactures (32.6%), petroleum products (28.8%), beverages (27.7%), machinery except electrical (26.7%), footwear and wearing apparel (20.9%), electrical machinery (20.7), paper and paper products (16.5%), non-metallic mineral products (15.7%), food manufacturing (14.1%) and fabricated metal products (10.1%). Refer to Tables 2-A and 3.

• Volume of Net Sales Index likewise increases

The Volume of Net Sales Index (VoNSI) climbed to 17.7 percent in July 2018 from a 5.8 percent decrease during the same month of the previous year. Of the 17 major sectors that exhibited increases in VoNSI, 12 sectors registered two-digit growth, namely: fabricated metal products (44.3%), basic metals (28.6%), footwear and wearing apparel (24.8%), miscellaneous manufactures (21.2%), furniture and fixtures (18.7%), food manufacturing (17.2%), machinery except electrical (16.3%), paper and paper products (12.4%), electrical machinery (12.2%), rubber and plastic products (11.5%), beverages (10.7%) and chemical products (10.2%). Refer to Tables 2-B and 4.

Average Capacity Utilization Rate in July 2018 is 84.2 percent with petroleum products posting the highest among industries

Average capacity utilization rate in July 2018 for total manufacturing was recorded at 84.2 percent. Fifty-five percent or 11 of the 20 major industries operated at 80 percent and above capacity utilization rates. These are:

• petroleum products (89.7%)
• basic metals (89.1%)
• non-metallic mineral products (86.4%)
• machinery except electrical (86.0%)
• electrical machinery (85.0%)
• food manufacturing (84.9%)
• chemical products (84.8%)
• paper and paper products (83.7%)
• rubber and plastic products (83.3%)
• wood and wood products (81.2%)
• textiles (80.3%)

The proportion of establishments that operated at full capacity (90% to 100%) was recorded at more than one-fourth of the total number of establishments (26.6%) in July 2018. About 55.0 percent of the total establishments operated at 70 percent to 89 percent capacity while almost one-fifth of the total establishments (18.4%) operated below 70 percent capacity. Refer to Table B and 6.

Response Rate

The response rates for the July 2018 MISSI and PPS were 78.1 percent and 83.2 percent, respectively.  Refer to Tables 7 and 8.

r - revised

Data of non-responding samples were estimated using short-term geometric mean of the relative values of responding samples within the industry class. Revisions of the preliminary estimates were done upon receipt of actual reports of late respondents.

LISA GRACE S. BERSALES, Ph. D.

Undersecretary

National Statistician and Civil Registrar General

TABLE 1-A Value of Production Index, June 2018 and July 2018

(2000 =100)