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 in the manufacturing sector. The results were based on a sample coverage of 548 manufacturing enterprises throughout the country with a response rate of 82.5 percent. Supplemental data from Garments and Textile Export Board (GTEB) were also used particularly for sales value of wearing apparel.

Executive Summary

Preliminary results of the interim survey for June 1998 showed an increase of 1.2 percent in the value of production over June last year. This increase could be attributed to higher costs of production, as reflected by the 13.1 percent year-on-year increase in the producer price index compared to the earlier 1.6 percent growth in June. Volume of production, which is net of price change, fell by 10.5 percent due to losses in nine sectors, namely: basic metals, chemicals, transport equipment, wearing apparel, beverage, rubber products, paper & paper products, tobacco and miscellaneous manufactures.

The value of net sales posted a 5 percent year-on-year growth but the corresponding volume experienced a 10.4 percent drop. Eleven sectors posted negative growth in net sales volume led by transport equipment. However five sectors managed to post increases, namely: furniture & fixtures, rubber products, paper & paper products, wood & wood products and textile.

r - revised due to updating of data from late responding establishments.

VALUE OF PRODUCTION

Year-on-year

Increases were observed in 9 out of 16 major sectors resulting in a 1.2 percent uptick in the overall growth. Leading the sectors in terms of relative contribution to overall growth was food manufacturing with an increase of 17.4 percent due to the gains in coconut and grain mill products, and vegetable oils and fats. Resumption of operations of one coconut product plant in June further boosted the overall growth in this sector. Other sectors that posted year-on-year growth were wearing apparel (40.3%), electrical machinery (22.3%), petroleum products (8.1%), wood and wood products (34.0%), textile (11.9%), paper and paper products (9.7%), furniture and fixtures (35.3%) and non-metallic mineral products (3.3%). Increases were due to the rise in exports of garments, microcircuits, furniture & fixtures and textile products, and in local sales of paper and paper products. The resumption of operation of additional machinery in one refinery also pulled up the value of production of petroleum products.

On the other hand, transport equipment sector posted the biggest decrease of 37.0 percent, primarily due to weak demand. Other sectors that suffered from low demand and/or plant shutdowns and contributed largely to the negative component of overall growth were basic metals (-16.1%), chemicals (-10.8%), beverage (-12.2%), miscellaneous manufactures (-32.4%), and rubber (-9.0%).

Month-on-month

On a month-on-month basis, value of production index increased by 5.2 percent. Eight sectors posted increments. Leading the sectors was petroleum products which grew by 24.1 percent. Other sectors that contributed to the positive growth were basic metals (29.0%), wearing apparel (21.7%), wood and wood products (34.4%), transport equipment (16.9%), textile (10.9%), furniture & fixturess (6.1%) and paper & paper products (0.4%), ranked according to their relative contribution to overall growth.

On the other hand, eight sectors posted decreases led by food manufacturing (-4.9%), electrical machinery (-2.3%), miscellaneous manufactures (-23.9%) and beverage (-3.5%), ranked according to their contribution to the negative component of value of production index.

VALUE OF PRODUCTION INDEX (JUNE 1998)

YEAR-ON-YEAR

GAINERS                                              GROWTH (%)

LOSERS

MONTH-ON-MONTH

GAINERS                                              GROWTH (%)

LOSERS

Note: Sectors are ranked according to their contribution to the overall June 1998 growth rate.

r - revised due to updating of data from late responding establishments.

VOLUME OF PRODUCTION

Year-on-year

The volume of production index (VoPI) for manufacturing declined by 10.5 percent. Basic metals, which dropped by -35.7 percent year-on-year, has been posting declines since December 1997. Other sectors reflecting significant decline in volume were chemicals (-22.8%), transport equipment (-43.2%), and wearing apparel (-19.1%). It is to be noted that while the value of production of wearing apparel increased by 40.3 percent, producer prices rose higher by 73.4 percent.

On the other hand, leading sectors that registered positive volume growths were: food manufacturing (3.5%), non metallic mineral products (19.0%), wood & wood products (14.6%), electrical machinery (5.0%), and petroleum refineries (1.5%).

Month-on-month

On a monthly basis, nine sectors registered growths. Petroleum refineries recorded the biggest increase of 22.3 percent. Other sectors that significantly contributed to the positive component of the overall growth were basic metals (28.7%), wood & wood products (34.4%), and transport equipment (16.9%).

On the other hand, seven sectors exhibited declines led by food manufacturing (-5.3%), followed by electrical machinery (-2.3%), other manufacturing industries (-24.2%), beverage (-3.5%), and chemicals (-0.8%).

VOLUME OF PRODUCTION INDEX (JUNE 1998)

YEAR-ON-YEAR 

GAINERS                                              GROWTH (%)

LOSERS

MONTH-ON-MONTH 

GAINERS                                              GROWTH (%)

LOSERS

Note: Sectors are ranked according to their contribution to the overall June 1998 growth rate.

r - revised due to updating of data from late responding establishments.

VALUE OF NET SALES

Year-on-year

The value of net sales for June 1998 showed an increase of 5.0 percent over the same month last year. This was due to wearing apparel, which posted a 63.0 percent growth. Other sectors that posted year-on-year growth were food manufacturing (12.2%), wood & wood products (34.5%), textile (23.2%), petroleum products (4.8%), paper & paper products (20.9%), rubber products (19.7%), and furniture & fixtures (18.1%).

On the other hand, sectors that posted decreases were electrical machinery (-19.4%), transport equipment (-33.7%), non-metallic mineral (-26.5%), chemicals (-8.1%), basic metals (-9.9%), beverage (-12.4%), and tobacco (-13.0%).

Month-on-month

On a month-on-month basis, the value of net sales dropped by 2.4 percent. Food manufacturing posted the biggest decline of 24.8 percent. Other sectors that posted decreases were petroleum products (-4.0%), electrical machinery (-5.1%), non-metallic mineral product (-9.1%), textile (-3.9%), beverage (-4.5%), miscellaneous manufactures (-15.7%), and tobacco (-14.4%).

On the other hand, eight sectors posted increases in the value of net sales, namely: wood and wood products (47.0%), chemicals (18.4%), transport equipment (12.2%), wearing apparel (6.8%), rubber products (14.5%), basic metals (0.6%), furniture & fixtures (4.8%), and paper & paper products (0.6%).

NET SALES VALUE (JUNE 1998)

YEAR-ON-YEAR

GAINERS                                              GROWTH (%)

LOSERS

MONTH-ON-MONTH

GAINERS                                              GROWTH (%)

LOSERS

Note: Sectors are ranked according to their contribution to the overall June 1998 growth rate.

VOLUME OF NET SALES

Year-on-Year

The volume of net sales for June 1998 declined by 10.4 percent over the same month last year. This was due to the declines in eleven sectors led by electrical machinery which decreased by -30.8 percent. Chemicals followed with -20.7 percent, basic metals (-26.8%), transport equipment (-40.2%), petroleum products (-6.6%), non-metallic mineral (-23.9%), beverage (-23.3%), wearing apparel (-6.0%), food manufacturing (-0.8%), tobacco (-17.3%), and miscellaneous manufactures (-7.0 %).

On the other hand, textile registered the biggest increase of 11.9 percent. Other sectors that posted positive growth were wood and wood products (15.1%), paper & paper products (7.5%), rubber products (12.9%), and furniture & fixtures (11.2%).

Month-on-Month

On a month-on-month basis, the volume of net sales dropped by 3.0 percent. Food manufacturing significantly contributed to this with a -24.7 percent decline. Petroleum products followed with a -4.4 percent dip; electrical machinery (-5.1%); non-metallic mineral (-9.4%); textile (-3.2%); wearing apparel (-2.1%); beverage (-4.5%); miscellaneous manufactures (-16.1%); and tobacco (-14.4%).

On the other hand, sectors that posted growths were wood and wood products (47.0%), chemicals (18.8%), transport equipment (12.2%), rubber products (14.7%), furniture & fixtures (4.8%), and paper and paper products (0.7%).

NET SALES VOLUME (JUNE 1998)

YEAR-ON-YEAR

GAINERS                                              GROWTH (%)

LOSERS

MONTH-ON-MONTH

GAINERS                                              GROWTH (%)

LOSERS

Note: Sectors are ranked according to their contribution to the overall June 1998 growth rate.