• Comparative Year-on-Year Production Value Up
  

  Value of production of the manufacturing industry in March 2001 moved up by 8.1 percent compared to year ago figures according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI).

  Sectors that significantly contributed to the favorable growth in the value of production were petroleum refineries (51.6%), food manufacturing (27.6%), wearing apparel (35.7%), non-metallic mineral products (11.1%), beverage (14.5%), miscellaneous manufactures (27.7%) and tobacco (13.8%). The growth in these sectors could be attributed mainly to the increased demand of the products in the local and export markets.

• While Volume of Production Continues to Decline

Since January 2001, volume of production posted year-on-year decreases led by transport equipment with -28.1 percent in March 2001. Other sectors which registered double-digit decreases in the volume of production were chemicals, wood and wood products, wearing apparel, rubber products and furniture and fixtures.

• Net Sales Slow Down

The value and volume of net sales slowed down by 12.9 percent and 0.9 percent in March 2001 compared to the previous month and to March last year.

• Value of Production Index

In March 2001, the value of production index (VaPI) of 633.2 increased by 8.1 percent from 585.8 in March 2000. Year-on-year increases were observed in 11 out of 16 major sectors led by petroleum refineries, which increased by 51.6 percent (see Annex 1-A). Other sectors that posted double-digit increases were food manufacturing (27.6%), wearing apparel (35.7%), non-metallic mineral products (11.1%), beverage (14.5%), miscellaneous manufactures (27.7%) and tobacco (13.8%).

On the other hand, double-digit decreases were observed in wood and wood products (-29.0%), transport equipment (-23.7%), rubber products (-21.0%) and furniture and fixtures (-36.9%).

• Volume of Production Index

The volume of production index (VoPI) for total manufacturing of 153.3 decreased by 2.0 percent from 156.5 of the same month last year. Ten out of 16 sectors posted year-on-year decreases (see Annex 1-B) with the transport equipment experiencing production setbacks since October 2000. The declines can be attributed to the temporary shutdown and strikes in some sample establishments. Other sectors that posted double-digit decreases were chemicals (-11.0%), wood and wood products (-28.8%), wearing apparel (-13.4%), rubber products (-20.7%) and furniture and fixtures (-38.2%).

On the other hand, double-digit increases were observed in petroleum refineries (25.3%), food manufacturing (17.2%), beverage (16.0%) and other manufacturing industries (20.8%).

• Value of Net Sales

The value of net sales for March 2001 increased by 12.9 percent over the same month last year. There were 13 major sectors which exhibited growths in their value of net sales. Petroleum refineries was the leading sector, posting 25.1 percent growth over the same month last year (see Annex 2-A). Other sectors which recorded double-digit year-on-year increases were textile (45.0%), non-metallic mineral products (57.0%), chemicals (13.0%), basic metals (11.3%), beverage (13.6%), miscellaneous manufactures (13.8%) and tobacco (31.4%).

On the other hand, wood and wood products, transport equipment and furniture and fixtures declined by 21.1 percent, 11.4 percent and 33.7 percent, respectively.

• Volume of Net Sales

The volume of net sales for March 2001 increased by 0.9 percent over the same month last year. Increases were observed in 10 out of 16 sectors led by textile which increased by 45.8 percent (see Annex 2-B). Other sectors that posted double-digit increases were non-metallic mineral products (47.8%), beverage (15.0%) and tobacco (17.1%).

On the other hand, sectors that registered negative growths were wearing apparel (-34.7%), wood and wood products (-21.0%), transport equipment (-16.5%), food manufacturing (-2.9%), electrical machinery (-5.0%) and furniture and fixtures (-35.2%).

• Producer's Price Index

Producer price index (PPI) for total manufacturing increased by 10.3 percent to 160.8 in March 2001 from 145.8 in March 2000. On a month-on-month basis, PPI increased by 1.5 percent.

Double-digit year-on-year increases were observed in the following sectors: wearing apparel (56.6%), iron and steel (29.4%), fabricated metals (22.3%), petroleum products (21.0%), glass and glass products (17.0%), other food manufacturing (14.8%), electrical machinery (12.6%), industrial chemicals (12.3%), tobacco (12.2%), printing and publishing (11.6%) and cement (11.5%).

• Capacity Utilization

The proportion of responding establishments that operated at full capacity (90%-100%) in March 2001 was 22.9, higher by 0.5 percentage points from 22.4 percent in March 2000 (see Annex 3-A). Those operating below 70 percent capacity utilization accounted for 38.4 percent. This proportion was higher by 3.8 percentage points compared to 34.6 percent a year ago.

Average capacity utilization rate for March 2001 for manufacturing was estimated at 78.4 percent, 3.3 percentage points lower than the 81.7 percent posted in March 2000 (see Annex 3-B). Of the 16 sectors, 11 sectors posted more than 80 percent capacity utilization rates. Petroleum refineries reported the highest capacity utilization rate of 84.6 percent. Other sectors with more than 80 percent capacity utilization rates were miscellaneous manufactures (84.5%), tobacco (83.1%), rubber products (83.0%), electrical machinery (82.9%), paper and paper products (82.2%), beverage (82.4%), non-metallic mineral products (82.2%), wearing apparel (81.7%), wood and wood products (80.5%) and furniture and fixtures (80.5%). On the other hand, basic metals and transport equipment posted the lowest capacity utilization rate of 66.5 percent and 66.7 percent, respectively.

• Response Rate

These results were based on the response of 414 sample establishments, which comprised 78.7 percent of the total number of manufacturing establishments covered by the survey.

ANNEX 1-A

VALUE OF PRODUCTION INDEX, FEBRUARY - MARCH 2001

Note: Sectors are ranked according to their contribution to the overall March 2001 growth rate.

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

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.

ANNEX 1-B

VOLUME OF PRODUCTION INDEX, FEBRUARY - MARCH 2001

Note: Sectors are ranked according to their contribution to the overall March 2001 growth rate.

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

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.

ANNEX 2-A

VALUE OF NET SALES, FEBRUARY - MARCH 2001

Note: Sectors are ranked according to their contribution to the overall March 2001 growth rate.

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

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.

ANNEX 2-B

VOLUME OF NET SALES, FEBRUARY - MARCH 2001

Note: Sectors are ranked according to their contribution to the overall March 2001 growth rate.

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

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