Introduction

These results were based on the interim Monthly Integrated Survey of Selected Industries (MISSI) of the National Statistics Office with the Department of Trade and Industry which will eventually provide flash indicators on the performance of industrial enterprises such as production, sales, employment, compensation, inventory of raw materials and finished products, and capacity utilization. The MISSI is a key feature arising from a Memorandum of Understanding (MOU) forged between the two offices along with the National Statistical Coordination Board, the Federation of Philippine Industries and the Philippine Chamber of Commerce and Industry.

This interim survey will only cover the value and volume of production and sales in the manufacturing sector while the MISSI questionnaire is still being finalized. The results were based on a sample of about 500 firms/establishments throughout the country, supplemented with exports data from Garments and Textile Export Board (GTEB) and data from the Philippine Cement Manufacturing Corporation (PHILCEMCOR).

Executive Summary

Preliminary results of the interim survey for May 1998 indicated that value of production of key manufacturing enterprises declined by -3.9 percent from same month last year. Similarly, year-on-year volume of production was down by -14 percent after posting a -13.3 percent decrease last month. Substantial decreases posted by the petroleum, transport equipment and basic metals sectors pulled down the overall indices of value and volume indices.

On the other hand, the value and volume of net sales posted positive growths of 11.8 percent and 3.7 percent, respectively. The growth in sales was led by increases in the wearing apparel, food and chemicals sectors. According to GTEB, garment exports in terms of peso value and volume doubled in May compared to same month last year.

On a month-on-month basis, the value and volume of production declined by about -2 percent, while the value and volume of net sales increased by 6.5 percent and 10.7 percent, respectively.

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

ANNEX 1-A

VALUE OF PRODUCTION

Year-on-year

Year-on-year decreases were observed in 8 out of 16 major sectors resulting in a drop of 3.9 percent in the overall growth. Leading among the sectors in terms of relative contribution to overall performance was petroleum products which declined by -13.9 percent. A shutdown in plant maintenance in one key enterprise, as well as low crude oil price and importation of finished products, contributed to the decline in production of this sector. Transport equipment and basic metals sectors which were hounded by low demand dropped by -55.0 percent and -23.4 percent, respectively.

On the other hand, the electrical machinery sector posted the biggest increase of 38.8 percent, due particularly to increased demand for microcircuit exports. Other sectors that contributed largely to the positive component of overall growth were food manufacturing (6.7%), wearing apparel (19.9%), and textile (17.2 %).

Month-on-month

On a month-on-month basis, value of production index declined by 2.2 percent. Six sectors posted declines. Food manufacturing registered the biggest drop of 24.2 percent, largely attributed to the -16.0 percent decrease posted by the sugar sector. Other sectors that significantly contributed to the overall downward pull were petroleum products (-4.8%), chemicals (-8.4%), and transport equipment (-8.7%).

On the other hand, ten sectors posted increases led by basic metals (23.3%), textile (24.8%), electrical machinery (7.3%) and wearing apparel (5.7%)

VALUE OF PRODUCTION INDEX 1998

YEAR-ON-YEAR

LOSERS

MONTH-ON-MONTH

LOSERS

Note: Sectors are ranked according to their contribution to the overall May 1998 growth rate.

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

ANNEX 1-B

VOLUME OF PRODUCTION

Year-on-year

The volume of production index (VoPI) for manufacturing decreased by -14.0 percent over that of May last year. Basic metals posted the biggest decline of -41.4 percent, although it slightly eased up from 51.6 percent recorded last month. Other sectors contributing largely to the decline in overall VoPI were petroleum refineries (-14.2%), transport equipment (-56.9%), wearing apparel (-27.1%), and chemicals (-14.6%).

On the other hand, five sectors registered positive growths: electrical machinery (20.2%), textile (5.8%), paper & paper products (3.2%), furniture & fixtures (17.8%), and tobacco (3.7%), primarily due to demand for exports.

Month-on-month

On a month-on-month basis, six sectors registered decreases. Food manufacturing recorded the biggest drop of -24.2 percent. Other sectors that significantly contributed to the downward pull of the overall growth were petroleum refineries (-6.1%), chemicals (-9.1%), and paper & paper products (10.9).

On the other hand, basic metals sector which increased by 22.3 percent, topped those that contributed to the positive component of the overall index. It was followed by textile (24.5%), electrical machinery (7.1%), and wearing apparel (8.6%).

VOLUME OF PRODUCTION INDEX 1998

YEAR-ON-YEAR

LOSERS

MONTH-ON-MONTH

LOSERS

Note: Sectors are ranked according to their contribution to the overall May 1998 growth rate.

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

ANNEX 2-A

VALUE OF NET SALES

Year-on-Year

The value of net sales for May 1998 posted an 11.8 percent increase over the same month last year, pulled up by the 101.6 percent increase in wearing apparel. Food manufacturing followed with a 19.8 percent increase; electrical machinery, 24.2 percent; chemicals, 22 percent; and paper and paper products, 14.7 percent.

On the other hand, textile registered the biggest drop of -43 percent. Other sectors that posted decreases were non-metallic mineral (-21.8 %), transport equipment (-16.9%), wood and wood products (-15.1%), and basic metals (-3.1%).

Month-on-Month

On a month-on-month basis, the value of net sales grew by 6.5 percent. Basic metals posted a 50.8 percent increase after declining by 2.4 percent last month. Other sectors that posted increases were wearing apparel (32.7%), food manufacturing (4.5%), transport equipment (18.6%), and electrical machinery (7.2%).

On the other hand, six sectors posted decreases in the month-on-month net sales led by wood and wood products (-22.5%), petroleum products (-4.1%), and chemicals (-2.9%).

NET SALES VALUE 1998

YEAR-ON-YEAR

LOSERS

MONTH-ON-MONTH

LOSERS

Note: Sectors are ranked according to their contribution to the overall May1998 growth rate.

ANNEX 2-B

VOLUME OF NET SALES

Year-on-Year

The volume of net sales for May 1998 posted a growth of 3.7 percent over the same month last year propped by the 101.6 percent increase in wearing apparel. Food manufacturing followed with an 18.3 percent growth; chemicals, 20.5 percent; and paper and paper products, 17.1 percent .

On the other hand, textile registered the biggest decrease at -49.7 percent. Other sectors that posted declines were electrical machinery (-17.7%), transport equipment (-40.7%), wood and wood products (-23.9%), non-metallic mineral products (-15.1%), and basic metals (-12.2%).

Month-on-Month

On a month-on-month basis, the volume of net sales increased by 10.7 percent. Petroleum products significantly contributed to the overall growth with an increase of 30.3 percent. Wearing apparel followed with a 32.7 percent growth; transport equipment, 28.6 percent; basic metals, 13.1 percent; and chemicals, 6.3 percent.

On the other hand, sectors that posted substantial decreases were wood and wood products (-9.5%), paper and paper products (5.0%), and non-metallic mineral products (5.3%).

NET SALES VOLUME 1998

YEAR-ON-YEAR

LOSERS

MONTH-ON-MONTH

LOSERS

Note: Sectors are ranked according to their contribution to the overall May 1998 growth rate.