r-revised

• Value of Production improves further
  

  Value of Production Index (VaPI) for the manufacturing industry posted a year-on-year growth of 9.6 percent in June 2006 compared with the year-ago figure, according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). Sectors that reported significant expansion in production were the following: leather products, basic metals, petroleum products, fabricated metal products, food manufacturing, beverages and textiles. Refer to Tables 1-A and 1.

  Likewise, VaPI on a monthly basis recorded a slow growth of 1.2 percent in June 2006, with fourteen (14) of the 20 major sectors posting increases in production. Major contributors to the increase were beverages and paper and paper products. Refer to Tables 1-A and 1.

• Volume of Production Index (VoPI) remains sluggish
  

  Volume of Production Index (VoPI) continued to drop as it posted a decrease of 4.3 percent in June 2006. Major sectors with significant reduction in factory output were the following: machinery excluding electrical, electrical machinery, tobacco, wood and wood products, footwear and wearing apparel, transport equipment and rubber products. Refer to Tables 2 and 1-B.

  On a month-on-month basis, VoPI reflected a slight increment of 0.3 percent in June 2006. This was due to the increases posted by the twelve (12) major sectors, led by beverages and paper and paper products. Refer to Tables 2 and 1-B.

  

   

  

• Value of Net Sales increases
  

  On a yearly basis, Value of Net Sales managed to grow by 3.8 percent in June 2006 compared to the previous month's (revised) growth of 7.7 percent. This was due to the two-digit increases reported by five (5) major sectors, which offset the declines in eight (8) major sectors. Refer to Tables 2-A and 3.

  However, Value of Net Sales on a monthly basis slowly stepped down by 0.6 percent in June 2006 from an increase (revised) of 8.7 percent in the previous month. Major sectors that influenced the drop in sales were the following: leather products, beverages and publishing and printing. Refer to Tables 2-A and 3.

• Volume of Net Sales continues to step down
  

  Volume of Net Sales continued to tumble as it posted a year-on-year decrease of 8.6 in June 2006. This was brought about by the sluggish performance in sales of the ten (10) major sectors, namely: machinery excluding electrical, electrical machinery, footwear and wearing apparel, transport equipment, beverages, publishing and printing, wood and wood products, tobacco, petroleum products and furniture and fixtures. Refer to Tables 2-B and 4.

  On a monthly basis, Volume of Net Sales also fell by 1.8 percent in June 2006 compared to the previous month's (revised) increase of 8.0 percent. Sectors that pulled down the sales were the following: leather products, beverages, publishing and printing and footwear and wearing apparel. Refer to Tables 2-B and 4.

  

• Producer Price Index (PPI) sustains double-digit growth
  

  Producer Price Index (PPI) of manufacturing sector maintained its two-digit growth at 14.5 percent in June 2006. Price increments were reported by sixteen (16) major sectors, with two-digit increases in the following: electrical machinery, footwear and wearing apparel, machinery excluding electrical, leather products, petroleum products, non-metallic mineral products, rubber products and fabricated metal products. Refer to Table 5.

  Also, PPI posted a monthly increase of 0.9 percent in June 2006. Price increments were observed in sixteen (16) major sectors. Refer to Table 5.

  

• Capacity Utilization
  

  Average capacity utilization in June 2006 for total manufacturing was estimated at 80.3 percent. Sectors that registered more than 80% capacity utilization rates were the following: machinery excluding electrical, petroleum products, paper and paper products, electrical machinery, miscellaneous manufactures, leather products, basic metals, rubber products, food manufacturing, chemical products and textiles. Refer to Table 6..

  The proportion of establishments that operated at full capacity (90% to 100%) was 9.7 percent in June 2006. More than half or 59.3 percent of the establishments operated at 70% to 89% capacity and 31.0 percent of the establishments operated below 70% capacity.

  Distribution of Key Manufacturing Establishments by Capacity Utilization
  Total Manufacturing, June 2006
  (In percent)

  Capacity Utilization	Percent Share
  Below 50 percent	3.3
  50 percent - 59 percent	8.6
  60 percent - 69 percent	19.1
  70 percent - 79 percent	23.2
  80 percent - 89 percent	36.1
  90 percent - 100 percent	9.7

• Response Rate
  

  The response rates for the June 2006 MISSI and PPS are 89.2 percent and 95.1 percent, respectively. Refer to Tables 7 and 8.

  Response Rates for Total Manufacturing
  (In percent)

  	June 2006	May 2006            (revised)
  MISSI	89.2	95.3
  PPS	95.1	97.0

• Technical Notes
  

  Starting 2006, weights for the Producer Price Index (PPI) are based from the results of the 2003 Annual Survey of Philippine Business and Industry (ASPBI) for manufacturing establishments with average total employment (ATE) of 20 and over.

  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.

  (Sgd.) CARMELITA N. ERICTA                                                                                                     Administrator

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  TABLE 1-A. VALUE OF PRODUCTION INDEX, May 2006 - June 2006
  (1994 =100)

  Gainers	Year-on-Year Growth (percent)
  	June 2006	May 2006 (revised)
  Petroleum Products	32.7	25.1
  Basic Metals	52.6	36.6
  Food Manufacturing	15.2	9.9
  Beverages	13.8	5.2
  Electrical Machinery	3.8	14.3
  Textiles	12.3	17.9
  Fabricated Metal Products*	20.4	29.0
  Non-Metallic Mineral Products	7.1	-5.5
  Paper and Paper Products	9.7	2.8
  Miscellaneous Manufactures	8.1	30.3
  Leather Products*	53.6	127.6
  Losers	Year-on-Year Growth (percent)
  	June 2006	May 2006 (revised)
  Tobacco	-35.3	-41.3
  Transport Equipment	-16.9	-16.7
  Footwear and Wearing Apparel*	-15.4	-11.5
  Chemical Products	-5.5	-5.2
  Machinery Excluding Electrical*	-33.2	-28.8
  Wood and Wood Products	-32.7	-34.9
  Publishing and Printing*	-10.9	-11.3
  Furniture and Fixtures	-10.2	-6.3
  Rubber Products	-3.9	-11.5

  TABLE 1-A. VALUE OF PRODUCTION INDEX, May 2006 - June 2006
  (concluded)
  (1994=100)

  Gainers	Month-on-Month Growth (percent)
  	June 2006	May 2006 (revised)
  Beverages	17.4	16.7
  Food Manufacturing	4.1	6.5
  Petroleum Products	3.8	4.7
  Paper and Paper Products	12.4	5.9
  Tobacco	5.6	19.0
  Transport Equipment	2.2	38.2
  Non-Metallic Mineral Products	2.7	10.5
  Furniture and Fixtures	9.2	-13.9
  Rubber Products	8.2	-1.2
  Wood and Wood Products	4.2	9.3
  Footwear and Wearing Apparel*	0.8	-4.5
  Machinery Excluding Electrical*	2.2	-0.1
  Miscellaneous Manufactures	0.8	26.5
  Chemical Products	0.1	1.5
  Losers	Month-on-Month Growth (percent)
  	June 2006	May 2006 (revised)
  Basic Metals	-8.9	26.4
  Electrical Machinery	-4.2	7.0
  Textiles	-5.1	3.4
  Publishing and Printing*	-9.6	17.7
  Fabricated Metal Products*	-3.1	20.3
  Leather Products*	-27.1	41.8

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

  Sectors are ranked according to their contribution to the overall 1994-based June 2006 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 2006 - June 2006
  (1994 = 100)

  Gainers	Year-on-Year Growth (percent)
  	June 2006	May 2006 (revised)
  Basic Metals	49.2	34.2
  Food Manufacturing	11.0	7.1
  Petroleum Products	9.6	2.4
  Beverages	11.1	0.6
  Textiles	9.3	14.3
  Paper and Paper Products	8.5	1.4
  Fabricated Metal Products*	6.8	14.4
  Miscellaneous Manufactures	8.6	30.5
  Leather Products*	25.9	80.1
  Furniture and Fixtures	1.2	2.2
  Losers	Year-on-Year Growth (percent)
  	June 2006	May 2006 (revised)
  Electrical Machinery	-43.8	-35.1
  Footwear and Wearing Apparel*	-33.3	-21.7
  Transport Equipment	-20.8	-20.1
  Tobacco	-39.0	-44.7
  Chemical Products	-5.2	-6.1
  Machinery Excluding Electrical*	-45.8	-47.5
  Wood and Wood Products	-37.3	-39.0
  Non-Metallic Mineral Products	-7.7	-16.8
  Rubber Products	-16.6	-23.3
  Publishing and Printing*	-8.7	-9.1

  TABLE 1-B. VOLUME OF PRODUCTION INDEX, May 2006 - June 2006
  (concluded)
  (1994=100)

  Gainers	Month-on-Month Growth (percent)
  	June 2006	May 2006 (revised)
  Beverages	17.4	16.7
  Food Manufacturing	4.0	6.7
  Paper and Paper Products	12.9	8.3
  Tobacco	5.6	19.0
  Transport Equipments	2.3	38.0
  Chemical Products	0.9	0.3
  Petroleum Products	0.4	-2.7
  Rubber Products	8.2	-1.3
  Furniture and Fixtures	6.8	-14.2
  Wood and Wood Products	4.0	9.6
  Non-Metallic Mineral Products	0.9	12.3
  Machinery Excluding Electrical*	1.7	0.2
  Losers	Month-on-Month Growth (percent)
  	June 2006	May 2006 (revised)
  Electrical Machinery	-7.0	7.9
  Basic Metals	-9.3	25.6
  Footwear and Wearing Apparel*	-8.2	0.7
  Textiles	-5.4	2.6
  Publishing and Printing*	-9.6	17.7
  Fabricated Metal Products*	-3.1	20.1
  Leather Products*	-24.6	41.8
  Miscellaneous Manufactures	-0.5	25.7

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

  Sectors are ranked according to their contribution to the overall 1994-based June 2006 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 2006 - June 2006
  (1994=100)

  Gainers	Year-on-Year Growth (percent)
  	June 2006	May 2006 (revised)
  Basic Metals	44.5	57.8
  Food Manufacturing	10.8	17.8
  Electrical Machinery	17.3	11.3
  Chemical Products	7.6	2.3
  Petroleum Products	3.7	15.5
  Fabricated Metal Products*	16.5	7.1
  Non-Metallic Mineral Products	5.5	-12.2
  Rubber Products	9.1	-9.2
  Leather Products*	44.6	122.6
  Losers	Year-on-Year Growth (percent)
  	June 2006	May 2006 (revised)
  Transport Equipment	-22.7	-20.6
  Beverages	-23.9	-9.0
  Machinery Excluding Electrical*	-69.3	-64.7
  Footwear and Wearing Apparel*	-12.0	9.4
  Tobacco	-12.9	9.5
  Publishing and Printing*	-25.1	-19.8
  Wood and Wood Products	-14.9	-33.0
  Furniture and Fixtures	-20.5	-18.2
  Textiles	-1.5	-4.9
  Paper and Paper Products	-0.7	-11.8
  Miscellaneous Manufactures	-0.7	4.9

  TABLE 2-A. VALUE OF NET SALES, May 2006 - June 2006 (concluded)
  (1994=100)

  Gainers	Month-on-Month Growth (percent)
  	June 2006	May 2006 (revised)
  Electrical Machinery	10.6	-2.8
  Chemical Products	4.1	1.2
  Paper and Paper Products	13.2	8.2
  Rubber Products	25.4	6.7
  Petroleum Products	0.9	5.5
  Miscellaneous Manufactures	8.2	10.7
  Non-Metallic Mineral Products	1.1	12.6
  Fabricated Metal Products*	1.7	17.1
  Losers	Month-on-Month Growth (percent)
  	May 2006	June 2006 (revised)
  Beverages	-19.5	0.8
  Basic Metals	-8.6	38.9
  Food Manufacturing	-2.7	3.7
  Tobacco	-5.9	6.3
  Footwear and Wearing Apparel*	-3.8	19.9
  Publishing and Printing*	-12.8	19.5
  Transport Equipment	-2.3	27.6
  Machinery Excluding Electrical*	-8.0	4.3
  Textiles	-1.8	17.0
  Leather Products*	-24.8	35.8
  Wood and Wood Products	-3.2	16.0
  Furniture and Fixtures	-0.7	-9.2

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

  Sectors are ranked according to their contribution to the overall 1994-based June 2006 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 2006 - June 2006
  (1994=100)

  Gainers	Year-on-Year Growth (percent)
  	June 2006	May 2006 (revised)
  Basic Metals	41.3	55.0
  Food Manufacturing	6.7	14.7
  Chemical Products	7.9	1.3
  Fabricated Metal Products*	3.4	-4.9
  Leather Products*	18.5	76.1
  Losers	Year-on-Year Growth (percent)
  	June 2006	May 2006 (revised)
  Electrical Machinery	-36.5	-36.8
  Petroleum Products	-14.3	-5.4
  Transport Equipment	-26.4	-23.9
  Beverages	-25.8	-13.0
  Footwear and Wearing Apparel*	-30.6	-3.2
  Machinery Excluding Electrical*	-75.2	-74.0
  Tobacco	-17.9	3.2
  Non-Metallic Mineral Products	-9.1	-22.8
  Publishing and Printing*	-23.3	-17.8
  Wood and Wood Products	-20.8	-37.3
  Textiles	-4.2	-7.7
  Furniture and Fixtures	-10.5	-10.8
  Rubber Products	-5.4	-21.2
  Paper and Paper Products	-1.7	-12.9
  Miscellaneous Manufactures	-0.2	5.1

  TABLE 2-B. VOLUME OF NET SALES, May 2006 - June 2006 (concluded)
  (1994=100)

  Gainers	Month-on-Month Growth (percent)
  	June 2006	May 2006 (revised)
  Electrical Machinery	7.3	-2.0
  Chemical Products	4.9	-0.1
  Paper and Paper Products	13.7	10.6
  Rubber Products	25.4	6.5
  Miscellaneous Manufactures	6.7	10.0
  Fabricated Metal Products*	1.7	16.9
  Losers	Month-on-Month Growth (percent)
  	June 2006	May 2006 (revised)
  Beverages	19.5	0.8
  Basic Metals	-9.0	38.0
  Footwear and Wearing Apparel*	-12.3	26.5
  Food Manufacturing	-2.7	3.9
  Petroleum Products	-2.4	-2.0
  Tobacco	-5.9	6.3
  Publishing and Printing*	-12.8	19.5
  Transport Equipment	-2.2	27.5
  Machinery Excluding Electrical*	-8.5	4.6
  Textiles	-2.1	16.1
  Wood and Wood Products	-3.4	16.3
  Leather Products*	-22.2	35.8
  Non-Metallic Mineral Products	-0.7	14.4
  Furniture and Fixtures	-2.9	-9.6

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

  Sectors are ranked according to their contribution to the overall 1994-based June 2006 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.

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  Source:   National Statistics Office
                   Manila, Philippines