• Value of Production Index (VaPI) falls

For March 2002, Value of Production Index (VaPI) of the manufacturing industry posted a decline of 2.9 percent compared with year ago figure, according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). Sectors that significantly contributed to the decrease were petroleum products, paper and paper products, rubber products, miscellaneous manufactures, leather products, machinery excluding electrical and footwear and wearing apparel (see Annex 1-A).

YEAR-ON-YEAR GROWTH RATES OF VaPI
TOTAL MANUFACTURING
(1994=100)

In contrast, VaPI moved up by 7.0 percent from a month ago increase of 3.9 percent. This was led by leather products which posted the biggest increase of 155.7 percent, followed by the other sectors which also registered double-digit increases: beverage, electrical machinery, furniture and fixtures and paper and paper products. (see Annex 1-A).

• Volume of Production Index (VoPI) also drops

On a year-on-year basis, Volume of Production Index (VoPI) likewise followed the trend as it fell to 1.2 percent from 3.3 percent growth during the previous month. Significant decreases were observed in petroleum products, paper and paper products, beverage, rubber products, machinery excluding electrical, publishing and printing, wood and wood products and basic metals (see Annex 1-B).

YEAR-ON-YEAR GROWTH RATES OF VoPI
TOTAL MANUFACTURING
(1994=100)

On the other hand, VoPI continued to increase at 5.9 percent on a month-on-month basis. Leading the gainers was leather products which registered a mark up of 155.7 percent. This was followed by other sectors with double-digit increases, as follows: beverage, furniture and fixtures, non-metallic mineral products and paper and paper products (see Annex 1-B).

• Value of Net Sales reduces further

In March 2002, value of net sales exhibited reduction of 0.9 percent compared to its previous month's year-on-year increase of 1.4 percent. This was brought about by decreases in the following sectors: machinery excluding electrical, leather products, petroleum products, paper and paper products, miscellaneous manufactures, rubber products, beverage, footwear and wearing apparel and basic metals (see Annex 2-A).

YEAR-ON-YEAR GROWTH RATES OF VALUE OF NET SALES
TOTAL MANUFACTURING
(1994=100)

However on a month-on-month basis, net sales grew by 7.9 percent surpassing the previous month's growth of 1.0 percent. Double-digit increases were exhibited by the following sectors: leather products, beverage, electrical machinery, textile, furniture and fixtures, wood and wood products, non-metallic mineral products and paper and paper products (see Annex 2-A).

• Volume of Net Sales remains unchanged

Year-on-year growth in volume of net sales remained flat compared to 3.3 percent of the previous month's increase. Six (6) sectors that reported double-digit increases were footwear and wearing apparel, leather products, fabricated metal products, furniture and fixtures, electrical machinery and transport equipment. Eight (8) sectors, on the other hand, registered double-digit decreases: machinery excluding electrical, paper and paper products, beverage, petroleum products, publishing and printing, rubber products, basic metals and tobacco (see Annex 2B).

YEAR-ON-YEAR GROWTH RATES OF VOLUME OF NET SALES
TOTAL MANUFACTURING
(1994=100)

On a monthly basis, however, volume of net sales grew by 7.0 percent against 0.8 percent growth of the previous month. This sharp increase can be attributed to the following sectors: leather products, beverage, furniture and fixtures, textile, wood and wood products, electrical machinery, Non-metallic mineral products and paper and paper products (see Annex 2B).

• Producer's Price Index (PPI) continues to go down

The Producer's Price Index for total manufacturing dipped by 1.7 percent in March 2002. This can be attributed to the double-digit decreases registered by the following sectors: leather products, footwear and wearing apparel and miscellaneous food (see Table 5).

YEAR-ON-YEAR GROWTH RATES OF PRODUCER�S PRICE INDEX
TOTAL MANUFACTURING
(1994=100)

On a monthly basis, PPI for total manufacturing made a turnaround, reflecting an increase of 1 percent compared to the negative trend registered during the previous month. Among the sectors, rubber products posted the highest increase of 12.7 percent. (see Table 5).

• Capacity Utilization

Average capacity utilization for March 2002 was estimated at 75.6 percent for total manufacturing. Sectors that registered for more than 80% capacity utilization rate were electrical machinery, rubber products, tobacco and paper and paper products (see Annex 3-A).

AVERAGE CAPACITY UTILIZATION FOR TOTAL MANUFACTURING
(In percent)

Establishments that operated at full capacity (90%-100%) in March 2002 accounted for 21.4 percent of the total responding establishments. About 40.0 percent of the responding establishments operated at 70%-89% capacity and the remaining 38.6 percent are those establishments which operated below 70% capacity.

DISTRIBUTION OF KEY MANUFACTURING ESTABLISHMENTS
BY CAPACITY UTILIZATION
TOTAL MANUFACTURING, MARCH 2002
(In percent)

• Response Rate

For March 2002, response rate is 90.0 percent, which corresponds to the retrieval of 521 sample establishments reports (see Table 6).

RESPONSE RATES FOR TOTAL MANUFACTURING
(In percent)

ANNEX 1-A

VALUE OF PRODUCTION INDEX, FEBRUARY - MARCH 2002
(1994 =100)

ANNEX 1-A

VALUE OF PRODUCTION INDEX, FEBRUARY - MARCH 2002(concluded)

Note: * - new sectors in the 1994-based series
Sectors are ranked according to their contribution to the overall 1994-based March 2002 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.

ANNEX 1-B

VOLUME OF PRODUCTION INDEX, FEBRUARY - MARCH 2002
(1994 = 100)

ANNEX 1-B

VOLUME OF PRODUCTION INDEX, FEBRUARY - MARCH 2002(concluded)

Note: * - new sectors in the 1994-based series
Sectors are ranked according to their contribution to the overall 1994-based March 2002 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.

ANNEX 2-A

VALUE OF NET SALES, FEBRUARY - MARCH 2002
(1994=100)

ANNEX 2-A

VALUE OF NET SALES, FEBRUARY - MARCH 2002 (concluded)
(1994=100)

Note: * - new sectors in the 1994-based series
Sectors are ranked according to their contribution to the overall 1994-based March 2002 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.

ANNEX 2-B

VOLUME OF NET SALES, FEBRUARY - MARCH 2002
(1994=100)

ANNEX 2-B

VOLUME OF NET SALES, FEBRUARY - MARCH 2002 (concluded)
(1994=100)

Note: * - new sectors in the 1994-based series
Sectors are ranked according to their contribution to the overall 1994-based March 2002 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.

ANNEX 3-A

AVERAGE CAPACITY UTILIZATION BY MAJOR SECTOR, MARCH 2002

Source: National Statistics Office
Manila, Philippines