r -revised

·  Value of Production Index (VaPI) falls

Value of Production Index (VaPI) for the manufacturing industry on a year-on-year comparison fell by 6.1 percent in March 2004, according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). Sectors that largely contributed to the decline were the following: leather products, petroleum products, wood and wood products, transport equipment and tobacco (see Table 1-A).

However, on a monthly basis, VaPI posted an increment of 1.2 percent in March this year due to the double-digit increases of the following sectors: beverage, leather products, transport equipment, footwear and wearing apparel, and furniture and fixtures (see Table 1-A).

·  Volume of Production Index (VoPI) dips further

On a year-on-year basis, Volume of Production Index (VoPI) went down by 11.0 percent in March 2004. Leather products led the sectors that contributed to the drop with a decline of 92.5 percent. Other sectors that posted double-digit decreases were the following: petroleum products, transport equipment, tobacco, wood and wood products, footwear and wearing apparel, nonmetallic mineral products and food manufacturing (see Table 1-B).

VoPI, on a monthly comparison, inched up by 0.7 percent in March 2004. Significant increases were exhibited by the following sectors: beverage, leather products, footwear and wearing apparel, transport equipment and furniture and fixtures (see Annex 1-B).

·  Value of Net Sales increases at slower rate

Value of Net Sales in March 2004 registered a year-on-year increase of 4.2 percent, although lower than the (revised) 13.8 percent growth recorded during the previous month. Leather products topped the five sectors with double-digit increases by posting a 125.1 percent growth. Other sectors with double-digit increments were the following: rubber products, petroleum products, basic metals and miscellaneous manufactures (see Table 2-A).

On a month-on-month comparison, Value of Net Sales likewise increased by 8.6 percent in March 2004. Double-digit increases were observed in the following sectors: beverage, leather products, wood and wood products, rubber products, basic metals, paper and paper products, chemical products, petroleum products and transport equipment, (see Table 2-A).

·  Volume of Net Sales drops

For March 2004, Net Sales Volume on a year-on-year basis dropped by 3.3 percent. Major sectors which contributed to the slack performance were the following: publishing and printing, electrical machinery, tobacco, fabricated metal products and wood and wood products (see Table 2-B).

On the other hand, Volume of Net Sales on a monthly comparison rose by 8.0 percent in March 2004. This was due to the double-digit performance of the following sectors: beverage, leather products, wood and wood products, rubber products, basic metals, paper and paper products, footwear and wearing apparel, petroleum products and chemical products (see Table 2-B).

·  Producer�s Price Index (PPI) continues to increase

The Producer�s Price Index (PPI) for total manufacturing on a year-on-year comparison continued its upward trend with a 5.5 percent increment in March 2004. Sectors that reported significant increases in prices were the following: basic metals, footwear and wearing apparel, nonmetallic mineral products, food manufacturing and textile (see Table 5).

On a monthly basis, PPI for total manufacturing went up by 0.5 percent in March 2004. The top five sectors that exhibited increases were the following: basic metals, rubber products, food manufacturing, electrical machinery and transport equipment (see Table 5).

·  Capacity Utilization

Average capacity utilization in March 2004 for total manufacturing was estimated at 78.6 percent. Sectors that posted more than 80% capacity utilization rate were the following: machinery excluding electrical, leather products, electrical machinery, miscellaneous manufactures, paper and paper products, rubber products, basic metals and food manufacturing (see Table 6).

The proportion of responding establishments that operated at full capacity (90%-100%) in March 2004 was 14.0 percent. More than half or 52.8 percent of the responding establishments operated at 70%-89% capacity and 33.1 percent of the establishments operated below 70% capacity.

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

·  Response Rate

The response rate for March 2004 is 85.7 percent, which corresponds to the retrieval of 461 sample establishments� reports (see 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, February 2004 - March 2004
(1994 =100)

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

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

Sectors are ranked according to their contribution to the overall 1994-based March 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, February � March 2004
(1994 = 100)

TABLE 1-B. VOLUME OF PRODUCTION INDEX, February � March 2004
(concluded)
(1994=100)

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

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

TABLE 2-A. VALUE OF NET SALES, February � March 2004 (concluded)
(1994=100)

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

Sectors are ranked according to their contribution to the overall 1994-based March 2004 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, February � March 2004
(1994=100)

TABLE 2-B. VOLUME OF NET SALES, February � March 2004 (concluded)
(1994=100)

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

Sectors are ranked according to their contribution to the overall 1994-based March 2004 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.

Source:   National Statistics Office
                 Manila, Philippines