• Production posts single-digit year-on-year increase

Production output of the manufacturing industry in May 2001 moved up by 8.8 percent in value and 2.0 percent in volume compared to year ago figures according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). The increases in production value and volume were, however, the lowest recorded for the last 12 months.

Sectors that significantly contributed to the favorable year-on-year increase in value of production were food manufacturing (12.8%), textile (39.3%), wearing apparel (30.0%), electrical machinery (17.4%), non-metallic mineral products (25.9%), basic metals (11.0%) and miscellaneous manufactures (12.4%).

• Value of net sales move up but slower

Value of net sales in May 2001 grew by 4.3 percent but slower compared to the growths posted during the last 12 months. Petroleum products sector, which declined by 2.4 percent in production value, gained 15.0 percent in terms of net sales value. Wearing apparel made a stride of 8.6 percent from a negative growth of 15.9 percent registered during the previous month.

• While net sales volume went down

Volume of net sales dipped by 4.8 percent from a positive growth of 4.4 percent in April 2001. The sectors that showed increases in production volume but decreases in net sales volume were electrical machinery, non-metallic mineral products and basic metals.

• Value of Production Index (1985=100)

In May 2001, the value of production index (VaPI) of 654.6 increased by 8.8 percent from 601.5 in May 2000. Year-on-year increases were observed in 10 out of 16 major sectors led by food manufacturing, which increased by 12.8 percent (see Annex 1-A). This can be attributed to the increased production of milled and refined sugar due to its high demand in the local market. Other sectors that continued to post double-digit increases were the following: textile (39.3%), wearing apparel (30.0%), electrical machinery (17.4%), non-metallic mineral products (25.9%) and miscellaneous manufactures (12.4%). Production value of basic metals increased to 11.0 percent from a single-digit increase during the previous month.

On the other hand, double-digit decreases were observed in wood and wood products (-27.9%) and rubber products (-10.1%). Petroleum products declined by 2.4 percent from a double-digit increase during the previous month.

• Volume of Production Index (1992=100)

The volume of production index (VoPI) for total manufacturing of 162.4 increased by 2.0 percent from 159.2 of the same month last year. Five out of 16 sectors posted year-on-year increases (see Annex 1-B). Food manufacturing posted the highest increase of 13.9 percent. Other sectors that posted increases were textile (40.5%), electrical machinery (10.5%), non-metallic mineral products (13.1%) and basic metals (4.4%).

On the other hand, double-digit decreases were observed in petroleum products (-20.9%), wearing apparel (-23.8%), wood and wood products (-27.8%), transport equipment (-12.0%), paper and paper products (-12.5%), rubber products (-10.5%) and other manufacturing industries (-30.0%).

• Value of Net Sales

The value of net sales for May 2001 increased by 4.3 percent over the same month last year. Ten major sectors exhibited growths in their value of net sales led by petroleum products which posted 15.0 percent growth over the same month last year (see Annex 2-A). Other sectors recorded double-digit year-on-year increases were textile (30.3%), miscellaneous manufactures (22.1%) and tobacco (20.2%).

On the other hand, double-digit decreases were posted by electrical machinery (-14.0%), basic metals (-13.2%) and rubber products (-26.0%).

• Volume of Net Sales

After posting positive growth during the last 12 months, volume of net sales for May 2001 declined by 4.8 percent over the same month last year. Decreases were observed in 11 out of 16 sectors, led by wearing apparel which decreased by 35.1 percent (see Annex 2-B). Other sectors that posted double-digit decreases were electrical machinery (-19.0%), basic metals (-14.9%), rubber products (-26.3%) and miscellaneous manufactures (-23.9%).

On the other hand, only 5 sectors registered increases in volume of net sales, as follows: food manufacturing (9.2%), textile (31.4%), beverage (2.3%), furniture and fixtures (6.5%) and tobacco (7.1%).

• Producer's Price Index (1992=100)

Producer price index (PPI) for total manufacturing increased by 6.7 percent to 156.9 in May 2001 from 147.1 in May 2000. On a month-on-month basis, PPI increased by 0.1 percent.

Double-digit year-on-year increases were observed in the following sectors: wearing apparel (70.7%), other manufacturing industries (60.4%), petroleum products (23.4%), fabricated metals (19.2%), glass and glass products (18.7%), electrical machinery (6.2%), tobacco (12.2%), cement (12.1%), industrial chemicals (11.9%) and printing and publishing (11.6%).

• Capacity Utilization

The proportion of responding establishments that operated at full capacity (90%-100%) in May 2001 was 21.8 percent, lower by 0.1 percentage point than that reported in May 2000 (see Annex 3-A). About 38.2 percent of responding establishments operated between 70%-89% capacity. Those operating below 70 percent capacity utilization accounted for nearly 40.0 percent, higher by 7.3 compared to year ago figure.

Average capacity utilization rate for May 2001 for manufacturing was estimated at 76.3 percent, 3.9 percentage points lower than the 80.2 percent posted in May 2000 (see Annex 3-B). Of the 16 sectors, 8 sectors posted more than 80 percent capacity utilization rates. Tobacco reported the highest capacity utilization rate of 87.2 percent. Other sectors with more than 80 percent capacity utilization rates were miscellaneous manufactures (86.7%), paper and paper products (85.6%), chemicals (83.9%), furniture and fixtures (83.2%), wearing apparel (81.8%), beverage (81.2%) and rubber products (81.1%). On the other hand, basic metals posted the lowest capacity utilization rate of 67.8 percent.

• Response Rate

These results were based on the response of 430 sample establishments, which comprised 82.9 percent of the total number of manufacturing establishments covered by the survey.

Source: National Statistics Office
Manila, Philippines