r -revised

·  Value of Production Index (VaPI) exhibits slower growth

Value of Production Index (VaPI) of the manufacturing industry moved up by 6.5 percent in June 2003 compared with year-ago figure, according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). Sectors largely contributing to the improved production performance were the following: machinery excluding electrical, wood and wood products, basic metals, miscellaneous manufactures, chemical products, textile, footwear and wearing apparel, petroleum products, food manufacturing and paper and paper products(see Table 1-A).

On a month-on-month basis, however, VaPI slowed down by 0.1 percent in June 2003 from its (revised) 3.7 percent jump in May 2003. Major sources of contraction were observed in the following sectors: publishing and printing, rubber products and petroleum products (see Table 1-A).

·  Volume of Production Index (VoPI) drops

On a year-on-year basis, Volume of Production Index (VoPI) slipped by 1.2 percent from an increase of (revised) 2.6 percent in May 2003. Sectors attributing to the drop were tobacco, electrical machinery, leather products, fabricated metal products and transport equipment (see Table 1-B).

On the contrary, VoPI on a monthly comparison exhibited a slim 0.2 percent growth in June 2003. The top (7) seven sectors contributing to this increase were the following: electrical machinery, chemical products, fabricated metal products, miscellaneous manufactures, footwear and wearing apparel, food manufacturing and nonmetallic mineral products (see Annex 1-B).

·  Value of net sales continues to step up

Value of Net Sales in June 2003 grew further by 7.1 percent on a year-on-year basis. This was primarily brought about by the 65.2 percent growth in machinery excluding electrical, followed by other sectors which also posted double-digit increases: basic metals, footwear and wearing apparel, petroleum products, chemical products, leather products, textile, miscellaneous manufactures and food manufacturing (see Table 2-A).

However, value of net sales slightly decelerated by 0.8 percent on a month-on-month basis from a (revised) 10.3 percent increase in May 2003. The following sectors weakened significantly in sales compared to the previous month: footwear and wearing apparel, electrical machinery, transport equipment and publishing and printing (see Table 2-A).

·  Net sales volume slide continues

Net sales volume continued its slump since April 2003 recording a year-on-year drop of 2.0 percent in June 2003. This was due to the shrinking growth of the following sectors, namely:electrical machinery, tobacco, paper and paper products and fabricated metal products(see Table 2-B).

Moreover, volume of net sales showed a month-on-month downswing of 0.6 percent from the previous months increment of (revised) 9.7 percent. Significant decreases were depicted in the following sectors: transport equipment, footwear and wearing apparel, electrical machinery and publishing and printing (see Table 2-B).

·  Producer's price index (PPI) continues to rise

Producers price index (PPI) for total manufacturing on a year-on-year comparison registered an increase of 7.9 percent in June 2003, slightly lower than the previous months increment of (revised) 8.1 percent. Significant increases were registered by six sectors led by chemical products, posting 21.3 percent. Other sectors that posted double-digit increases were paper and paper products, petroleum products, footwear and wearing apparel, leather products and electrical machinery (see Table 5).

On a monthly basis, PPI for total manufacturing declined by 0.3 percent in June 2003. Sectors that contributed to the decrease were: rubber products, footwear and wearing apparel, electrical machinery, leather products, transport equipment, basic metals and beverage(see Table 5).

·  Capacity Utilization

Average capacity utilization in June 2003 for total manufacturing was estimated at 78.4 percent. Sectors that posted more than 80% capacity utilization rate were the following: machinery excluding electrical, miscellaneous manufactures, footwear and wearing apparel, paper and paper products, petroleum products and nonmetallic mineral products (see Table 6).

The proportion of responding establishments that operated at full capacity (90%-100%) in June 2003 was 16.3 percent. About 47.1 percent of the responding establishments operated at 70%-89% capacity and 36.6 percent of the establishments operated below 70% capacity.

DISTRIBUTION OF KEY MANUFACTURING ESTABLISHMENTS
BY CAPACITY UTILIZATION
TOTAL MANUFACTURING, JUNE 2003
(In percent)

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

·  Response Rate

The response rate for June 2003 is 87.8 percent, which corresponds to the retrieval of 488 sample establishments reports (see Table 7).

RESPONSE RATES FOR TOTAL MANUFACTURING
(In percent)

·  Technical Notes

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, APRIL - JUNE 2003
(1994 =100)

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

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

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

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

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

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

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

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

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

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

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