Monthly Integrated Survey of Selected Industries : March 1999

Reference Number: 

1999-028

Release Date: 

Tuesday, May 18, 1999

 

Production and sales for total manufacturing in March 1999 continued to decline though at a slower rate compared to a year ago according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI).

The volume of production declined to 3.3 percent in March from 7.7 percent in February. The volume of net sales also decreased to 4.9 percent from 13.8 percent.

The negative performance was seen in consumer-oriented manufactures (food, and wearing apparel), in industrial inputs (paper & paper products, chemicals, and petroleum products),and in construction-related commodities (non-metallic mineral products and basic metals). These sectors appeared to be among those which have been drawing down from their existing inventories.

There were indications though of some inventory replenishment and/or build-up in textile, beverage, tobacco and furniture & fixtures, in anticipation of increases in consumer demand.

The situation was somehow better when compared month-on-month to February 1999. The volume of production grew by 7.9 percent in March compared to 1.2 percent in February. However the volume of net sales decelerated to 2.9 percent from 33.9 percent.

Double-digit (month-on-month) growths both in production and sales were observed in wood & wood products, transport equipment, non-metallic mineral products and tobacco.

Value of Production

In March 1999, the value of production index (VPI) of 485.5 decreased by 1.2 percent compared with 491.4 in March 1998. Year-on-year decreases were observed in 8 out of 16 major sectors (See Annex 1A). Petroleum products dropped by 14.0 percent due to the economic slowdown and also the low price of imported crude oil. Other sectors that decreased were basic metals (-25.9%), non-metallic mineral products (-31.4%), chemicals (-11.0%), wearing apparel (-15.6%), wood & wood products (-24.4%), paper & paper products (-5.9%) and food manufacturing (-1.1%). On the other hand, textiles posted a year-on-year growth of 13.6 percent attributed to the expected demand of uniforms. Other sectors that posted double-digit growths were rubber products (30.8%), beverage (16.4%) and miscellaneous manufactures (21.8%).

Volume of Production

The volume of production index (VoPI) declined by 3.3 percent from 147.6 last year to 142.8. Nine out of 16 sectors posted year-on-year decreases led by petroleum products, which declined by 13.1 percent (See Annex 1B). Other sectors which largely contributed to the decline of the overall VoPI were chemicals (-16.0%), non-metallic mineral products (-28.5%), wearing apparel (-15.5%), wood & wood products (-23.2%), basic metals (-9.5%), food manufacturing (-2.9%), paper & paper products (-12.3%) and transport equipment (-4.3%).

Value of Net Sales

The value of net sales for March 1999 decreased by 1.7 percent compared to last year. Ten out of 16 sectors contracted led by food manufacturing, which declined by 25.9 percent (See Annex 2A). Other sectors that recorded declines were petroleum products (-17.8%), beverage (-51.2%), non-metallic mineral products (-21.4%), paper & paper products (-18.4%), basic metals (-6.8%), wearing apparel (-5.2%), textile (-4.1%), furniture & fixtures (-12.1%) and tobacco (-2.0). On the other hand, six sectors posted growth. These were electrical machinery (63.9%), transport equipment (37.1%), wood & wood products (27.2%), rubber products (35.9%), chemicals (4.4%), and miscellaneous manufactures (89.1%).

Volume of Net Sales

The volume of net sales for March 1999 posted a decline of 4.9 percent over last year. Decreases were noted in 10 sectors led by food manufacturing, which decreased by 27.3 percent (See Annex 2B). This was followed by petroleum products (-21.9%), beverage (-58.1%), non-metallic mineral products (-31.8%), paper & paper products (-24.0%), textile (-7.3%), wearing apparel (-5.0%), furniture & fixtures (-24.6%), chemicals (-1.5%) and tobacco (-0.7%). On the other hand, six sectors posted growth. These were led by electrical machinery, which increased by 57.8 percent. This was followed by wood & wood products (29.3%), transport equipment (20.9%), basic metals (8.4%), miscellaneous manufactures (77.7%) and rubber products (14.6%).

Capacity Utilization

Responding establishments operating below 70% capacity were 39.2 percent in March 1999 compared to 39.1 percent a year ago. About 16.0 percent operated at full capacity (90%-100%) compared to 17.5 percent in March 1998.

At least eight of the sixteen sectors had declining use of their existing capacity in March. On the other hand, rubber products, electrical machinery and miscellaneous manufactures showed indications of increasing industrial output and capacity utilization. While their volume of net sales were still declining, capacities in textile, furniture, paper and chemicals were also reported as increasingly being used in expectation of improved demand. Capacity utilization is defined as the ratio of output to the maximum rated capacity of the plant.

These results were based on the response of 373 sample establishments, which comprised 67.5 percent of the total number of establishments covered by the survey.
 
 
 

ANNEX 1-A

VALUE OF PRODUCTION INDEX (MARCH 1999)

YEAR-ON-YEAR

 

 
GROWTH (%)
GAINERS 
March
Februaryr
Textile
13.6
29.6
Electrical Machinery
6.8
-7.8
Rubber Products
30.8
26.7
Transport Equipment
8.5
1.2
Beverage
16.4
15.6
Miscellaneous Manufactures
21.8
26.7
Furniture & Fixtures
7.9
6.6
Tobacco
7.7
8.2

LOSERS

Petroleum Products
-14.0
-13.7
Basic Metals
-25.9
-34.9
Non-Metallic Mineral Products
-31.4
-30.0
Chemicals
-11.0
2.7
Wearing Apparel
-15.6
-29.2
Wood & Wood Products
-24.4
-37.9
Paper & Paper Products
-5.9
8.1
Food Manufacturing
-1.1
-1.0

MONTH-ON-MONTH

 
 GROWTH (%)
GAINERS
March
Februaryr
Food manufacturing
17.5
-13.9
Wood & Wood Products
23.3
-0.9
Electrical Machinery
7.6
1.2
Wearing Apparel
11.5
-10.6
Transport Equipment
13.1
2.4
Non-Metallic Mineral Products
11.7
2.9
Petroleum Products
1.6
6.6
Beverage
10.3
3.6
Paper & Paper Products
3.9
32.2
Rubber Products
9.7
2.4
Tobacco
17.6
-6.1
Furniture & Fixtures
4.4
10.3
Miscellaneous Manufactures
1.4
15.3

LOSERS

Chemicals
-6.9
16.6
Textile
-7.0
38.3
Basic Metals
-0.5
9.5

Note: Sectors are ranked according to their contribution to the overall March 1999 growth rate.
r - revised due to updating of data from late responding establishments.
 
 

ANNEX 1-B

VOLUME OF PRODUCTION INDEX (MARCH 1999)

YEAR-ON-YEAR

 
 GROWTH (%)
GAINERS
March
Februaryr
Textile
9.9
21.4
Electrical Machinery 
2.8
-11.0
Rubber Products
10.3
4.9
Other Manufacturing
14.4
17.8
Furniture & Fixtures
5.6
4.3
Tobacco
9.2
9.7

LOSERS

Petroleum Refineries
-13.1
-4.9
Chemicals
-16.0
-3.4
Non-Metallic Mineral Products
-28.5
-19.8
Wearing Apparel
-15.5
-25.0
Wood & Wood Products
-23.2
-36.9
Basic Metals
-9.5
-19.2
Food Manufacturing
-2.9
-4.8
Paper & Paper Products
-12.3
0.8
Transport Equipment
-4.3
-8.1
Beverage
-0.0
-0.8

MONTH-ON-MONTH

 
GROWTH (%)
GAINERS
March
Februaryr
Food Manufacturing
19.6
-13.3
Transport Equipment
35.8
2.4
Wood & Wood Products
23.3
-0.9
Electrical Machinery
6.9
1.2
Wearing Apparel
11.8
-10.4
Petroleum Refineries
2.3
7.7
Beverage
10.3
3.6
Rubber Products
7.2
3.1
Paper & Paper Products
2.6
36.8
Non-Metallic Mineral
1.8
-8.5
Other Manufacturing
11.3
12.5
Tobacco
17.6
-6.1
Furniture & Fixtures
4.4
10.3

LOSERS

Chemicals
-7.1
17.0
Textile
-7.0
36.2
Basic Metals
-3.0
10.0

Note: Sectors are ranked according to their contribution to the overall March 1999 growth rate.
r - revised due to updating of data from late responding establishments.
 
 
 

ANNEX 2-A

NET SALES VALUE (MARCH 1999)

YEAR-ON-YEAR

 
GROWTH (%)
GAINERS
March
February
Electrical Machinery
63.9
-8.8
Transport Equipment
37.1
-21.2
Wood & Wood Products
27.2
-29.9
Rubber Products
35.9
25.3
Chemicals
4.4
21.2
Miscellaneous Manufactures
89.1
7.2

LOSERS

Food Manufacturing
-25.9
-16.2
Petroleum Products
-17.8
-26.9
Beverage
-51.2
-10.1
Non-Metallic Mineral Products
-21.4
-28.1
Paper & Paper Products
-18.4
-22.7
Basic Metals
-6.8
1.4
Wearing Apparel
-5.2
17.1
Textile
-4.1
-15.7
Furniture & Fixtures
-12.1
2.0
Tobacco
-2.0
2.0

MONTH-ON-MONTH

                                                                                     GROWTH (%)

GAINERS
March
February
Petroleum Products
9.8
133.7
Chemicals
18.9
6.0
Electrical Machinery
13.3
-3.3
Wood & Wood Products
31.5
14.1
Paper & Paper Products
24.3
-6.8
Non-Metallic Mineral Products
14.8
4.4
Food Manufacturing
2.3
-7.1
Transport Equipment
10.5
53.7
Textile
6.4
34.9
Tobacco
18.8
-13.3
Furniture & Fixtures
3.1
14.6
Rubber Products
0.6
-31.0

LOSERS

Basic Metals
-7.0
10.4
Wearing Apparel
-6.7
7.7
Miscellaneous Manufactures
-44.0
41.4
Beverage
-3.0
3.0

Note: Sectors are ranked according to their contribution to the overall March 1999 growth rate.
 

ANNEX 2-B

NET SALES VOLUME (MARCH 1999)

YEAR-ON-YEAR

                                                                    GROWTH (%)

GAINERS 
March
February
Electrical Machinery
57.8
-11.7
Wood & Wood Products
29.3
-31.7
Transport Equipment
20.9
-29.1
Basic Metals
8.4
22.0
Miscellaneous Manufactures
77.7
-1.9
Rubber Products
14.6
10.8

LOSERS

Food Manufacturing
-27.3
-20.4
Petroleum Products
-21.9
-31.6
Beverage
-58.1
-13.4
Non-Metallic Mineral Products
-31.8
-37.1
Paper & Paper Products
-24.0
-27.8
Textile
-7.3
-22.7
Wearing Apparel
-5.0
23.7
Furniture & Fixtures
-24.6
-24.6
Chemicals
-1.5
13.4
Tobacco
-0.7
0.3

MONTH-ON-MONTH

                                                                              GROWTH (%)

GAINERS  
March
February
Chemicals
18.7
6.4
Electrical Machinery
13.6
-3.3
Wood & Wood Products
31.5
14.1
Paper & Paper Products
22.8
-5.7
Food Manufacturing
4.1
-6.0
Non-Metallic Mineral Products
14.4
3.8
Transport Equipment
10.5
53.7
Textile
6.3
34.7
Tobacco
18.8
-13.3

LOSERS

Petroleum Products
-16.5
145.8
Basic Metals
-7.2
10.4
Wearing Apparel
-6.5
7.7
Miscellaneous Manufactures
-43.0
38.3
Beverage
-3.0
3.0
Furniture & Fixtures
-7.5
-7.5
Rubber Products
-1.8
-30.5

Note: Sectors are ranked according to their contribution to the overall March 1999 growth rate.
 

Distribution of Key Enterprise by Capacity Utilization
(In percent)

Capacity
  Utilization  
1998 1999
MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR

  Below 50 %  

50 - 59 %

60 - 69 %

70 - 79 %

80 - 89 %

90 - 100 %

  10.4  

  11.6  

  17.1  

  21.6  

  22.0  

  17.5  

  11.9  

  12.3  

  13.9  

  23.1  

  22.1  

  16.6  

  12.6  

  11.2  

  15.4  

  21.1  

  23.2  

  16.5  

  13.1  

  9.9  

  14.1  

  21.3  

  23.9  

  17.7  

  12.3  

  8.5  

  17.1  

  22.4  

  21.4  

  18.4  

  11.8  

  11.3  

  17.2  

  20.5  

  22.7  

  16.6  

  11.8  

  11.4  

  16.8  

  22.3  

  20.9  

  16.8  

  12.3  

  12.3  

  17.1  

  20.2  

  20.9  

  17.3  

  13.1  

  10.5  

  15.5  

  21.0  

  21.8  

  18.1  

  12.5  

  12.5  

  15.9  

  20.3  

  23.5  

  15.4  

  12.3  

  12.3  

  15.3  

  21.9  

  21.6  

  16.8  

  13.8  

  11.6  

  16.4  

  22.6  

  22.0  

  13.5  

  14.3  

  10.6  

  14.3  

  22.1  

  22.6  

  16.0  


 

Percentage Changes in Production and Net Sales of Key Enterprises:
March 1998 - March 1999

ITEM   MAR     APR     MAY     JUN     JUL     AUG     SEP     OCT     NOV     DEC     JAN     FEB     MAR  

Year-on-Year Change
Production
    Value 
    Volume 
Net Sales 
    Value
    Volume
 
9.5r
-0.4r
  
5.7
4.2
 
-5.3r
-14.6r
  
0.7
-9.9
 
0.8r
-9.9r
  
11.8
3.7
 
7.2r
-5.0r
  
5.0
-10.4
 
-0.2r
-11.6r
  
3.3
-5.4
 
-6.4r
-15.7r
  
-12.8
-23.3
 
-0.5r
-9.9r
  
-5.1
-16.0
 
-7.6r
-15.7r
  
-21.7
-15.0
 
-17.4r
-24.2r
  
-10.7
-16.1
 
-8.2r
-13.7r
  
-5.2
-6.0
 
-5.1r
-6.3r
  
-12.2
-19.0
 
-7.2r
-7.7r
 
-11.1
-13.8
 
-1.2
-3.3
  
-1.7
-4.9
 
Month-on-Month Change
Production
    Value 
    Volume 
Net Sales 
    Value
    Volume
 
1.3r
3.0r
  
2.9
5.7
 
-11.6r
-12.1r
  
-1.1
-3.7
 
4.6r
3.9r
  
6.5
10.7
 
8.2r
7.8r
  
-2.4
-3.0
 
-2.2r
-2.2r
  
4.1
4.9
 
-3.5r
-3.3r
  
-12.5
-11.3
 
5.6r
5.1r
  
4.1
2.5
 
-4.7r
-5.1r
  
5.6
-1.1
 
-2.3r
-2.8r
  
1.7
0.5
 
-6.0r
-4.9r
  
1.9
1.5
 
3.2r
3.1r
  
-2.7
-10.2
 
-1.6r
-1.2r
  
31.3
33.9
 
7.8
7.9
  
8.0
2.9

r - revised due to updating of data from late responding establishments.
 
Source: National Statistics Office
Manila, Philippines

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