r -revised

·  Value of Production Index (VaPI) posts higher growth

In June 2004, the Value of Production Index (VaPI) for the manufacturing industry on a year-on-year basis gained 8.5 percent from a (revised) 3.8 percent increase posted during the previous month, according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). Eight (8) sectors posted double-digit increases, as follows: rubber products, electrical machinery, furniture and fixtures, fabricated metal products, machinery excluding electrical, transport equipment, beverage and publishing and printing. Refer to Tables 1-A and 1.

On a month-on-month basis, VaPI continued to rise as it posted a 4.1 percent increase in June 2004. Sectors which significantly contributed to the increase were leather products, electrical machinery and machinery excluding electrical. Refer to Tables 1-A and 1.

·  Volume of Production Index (VoPI) picks up

Volume of Production Index (VoPI) surged by 2.7 percent in June 2004 following a slowdown since September 2003. Significant expansion in output was noted in the following sectors: rubber products, electrical machinery, furniture and fixtures, beverage, fabricated metal products, publishing and printing and machinery excluding electrical. Refer to Tables 1-B and 2.

Month-on-month performance of VoPI continued to improve with a 3.9 percent gain in June 2004. Sectors with double-digit increases were leather products, electrical machinery and machinery excluding electrical. Refer to Tables 1-B and 2.

·  Value of Net Sales gains further

On a year-on-year basis, Value of Net Sales continued its up trend with 11.6 percent increase in June 2004 compared to the previous month�s (revised) growth rate of 8.1 percent. Leather products led all sectors, which increased by 145.7 percent. Other contributors were sectors with double-digit increases, as follows: basic metals, rubber products, electrical machinery, textile, non-metallic mineral products, transport equipment and machinery excluding electrical. Refer to Tables 2-A and 3.

Value of Net Sales, on a monthly basis, exhibited a growth of 3.0 percent in June 2004. Sectors with double-digit increases were leather products, machinery excluding electrical, transport equipment, chemical products and tobacco. Refer to Tables 2-A and 3.

·  Volume of Net Sales improves

Volume of Net Sales, on a year-on-year basis, rose by 1.2 percent in June 2004. Leather products topped all sectors, followed by electrical machinery, rubber products, furniture and fixtures, beverage and textile. Refer to Tables 2-B and 4.

On a month-on-month basis, Volume of Net Sales increased by 2.3 percent in June 2004. This was due to the notable sales performance of the following sectors: leather products, machinery excluding electrical, chemical products, transport equipment and tobacco. Refer to Tables 2-B and 4.

·  Producer�s Price Index (PPI) maintains increasing trend

The Producer�s Price Index (PPI) for total manufacturing on a year-on-year basis improved by 5.7 percent in June 2004. Sectors with double-digit increases were footwear and wearing apparel, basic metals, petroleum products, food manufacturing and non-metallic mineral products. Refer to Table 5..

On a monthly basis, PPI for total manufacturing increased by a mere 0.2 percent in June 2004. Sectors with significant contributions to the increment were petroleum products, furniture and fixtures, non-metallic mineral products, and transport equipment. Refer to Table 5.

·  Capacity Utilization

Average capacity utilization in June 2004 for total manufacturing was estimated at 79.6 percent. Sectors that posted more than 80% capacity utilization rates were the following: machinery excluding electrical, electrical machinery, leather products, miscellaneous manufactures, petroleum products, paper and paper products, rubber products, chemical products, basic metals and food manufacturing. Refer to Table 6..

The proportion of establishments that operated at full capacity (90%-100%) in June 2004 was 17.9 percent. Nearly half or 46.9 percent of the establishments operated at 70%-89% capacity and 35.2 percent of the establishments operated below 70% capacity.

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

·  Response Rate

The response rate for June 2004 is 88.5 percent, which corresponds to the retrieval of 476 sample establishments� reports. Refer to Table 7.

Response Rates for Total Manufacturing
(In percent)

·  Technical Notes

Starting 2004, weights for the Producer�s 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 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, May-June 2004
(1994 =100)

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

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

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

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

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

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

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

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

Sectors are ranked according to their contribution to the overall 1994-based June 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-B. VOLUME OF NET SALES, May - June 2004
(1994=100)

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

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

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

Source:   National Statistics Office
              Manila, Philippines