• Value of Production Index (VaPI) continues to gain

For May 2002, Value of Production Index (VaPI) of the manufacturing industry continued to grow at a slower rate of 8.9 percent compared with year ago figure, according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). Major sources of increase were from fabricated metal products, textile, transport equipment, electrical machinery, non-metallic mineral products, basic metals and chemical products (see Annex 1-A).

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

Meanwhile, VaPI's month-on-month performance improved by 2.6 percent reversing the previous month's decline of 2.3 percent. Leather products contributed the highest increase at 62.2 percent, followed by the other sectors which also recorded double-digit increases: footwear and wearing apparel, fabricated metal products, chemical products and wood and wood products (see Annex 1-A).

• Volume of Production Index (VoPI) also increases

Volume of Production Index (VoPI) registered a year-on-year increase of 10.7 percent in May 2002. Significant increment of 91.6 percent was exhibited by footwear and wearing apparel, followed by other sectors which showed also double-digit growth: fabricated metal products, electrical machinery, textile, leather products, miscellaneous manufactures, transport equipment, food manufacturing and non-metallic mineral products (see Annex 1-B).

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

On a month-on-month basis, VoPI moved up to 2.5 percent from a negative growth rate of 3.1 percent in April 2002. Leather products contributed the highest increase at 62.2 percent. Other sectors with double-digit growth were fabricated metal products, footwear and wearing apparel, chemical products and wood and wood products (see Annex 1-B).

• Value of Net Sales continues to grow

Year-on-year growth in value of net sales continued to increase, slowing down to 15.9 percent from the previous month�s growth of 18.2 percent. Sectors that significantly contributed to the increase were the following: basic metals, electrical machinery, fabricated metal products, transport equipment, textile and petroleum products (see Annex 2-A).

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

On a month-on-month basis, value of net sales rose by 7.3 percent compared to the previous month�s increase of 1.8 percent. Rounding up the list of the top gainers were leather products, wood and wood products, machinery excluding electrical, chemical products, footwear and wearing apparel and tobacco (see Annex 2-A).

• Volume of Net Sales also rises

Growth of net sales volume slackened to 17.1 percent in May 2002 compared with the previous figure of 18.9 percent. Significant growth was observed in most of the sectors with footwear and wearing apparel posting the highest increment of 85.5 percent. Other sectors which showed double-digit increases were electrical machinery, basic metals, fabricated metal products, transport equipment, petroleum products, textile, leather products, miscellaneous manufactures, rubber products and food manufacturing (see Annex 2-B).

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

On a month-on-month basis, volume of net sales further gained by 6.9 percent compared to the previous month�s 0.7 percent growth. Sectors that showed double-digit increase were the following: leather products, wood and wood products, machinery excluding electrical, chemical products, footwear and wearing apparel, furniture and fixtures, tobacco and transport equipment (see Annex 2-B).

• Producer�s Price Index (PPI) continues to decelerate

The Producer�s Price Index for total manufacturing continued to decline, indicating a 1.6 percent decrease in May 2002. Sectors that largely contributed to the decline were the following: leather products, footwear and wearing apparel, miscellaneous manufactures and electrical machinery (see Table 5).

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

On a month-on-month basis, PPI for total manufacturing posted a minimal increase of 0.1 percent. Sectors that contributed to the increase were footwear and wearing apparel, basic metals, petroleum products, food manufacturing and textile (see Table 5).

• Capacity Utilization

Average capacity utilization was estimated at 75.0 percent in May 2002 for total manufacturing. Sectors that resulted to 80% or more capacity utilization rate were electrical machinery, miscellaneous manufactures, rubber products, beverage, petroleum products, and tobacco (see Table 6).

AVERAGE CAPACITY UTILIZATION FOR TOTAL MANUFACTURING
(In percent)

In May 2002, the proportion of responding establishments that operated at full capacity (90%-100%) was 19.1 percent. About 40.5 percent of the responding establishments operated at 70%-89% capacity and establishments operating below 70% capacity accounted for 40.4 percent.

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

• Response Rate

Response rate for May 2002 is 82.0 percent, which corresponds to the retrieval of 473 sample establishments reports (see Table 7).

RESPONSE RATES FOR TOTAL MANUFACTURING
(In percent)

ANNEX 1-A

VALUE OF PRODUCTION INDEX, APRIL - MAY 2002
(1994 =100)

ANNEX 1-A

VALUE OF PRODUCTION INDEX, APRIL - MAY 2002 (concluded)

Note: * - new sectors in the 1994-based series
Sectors are ranked according to their contribution to the overall 1994-based May 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, APRIL - MAY 2002
(1994 = 100)

ANNEX 1-B

VOLUME OF PRODUCTION INDEX, APRIL - MAY 2002(concluded)

Note: * - new sectors in the 1994-based series
Sectors are ranked according to their contribution to the overall 1994-based May 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, APRIL - MAY 2002
(1994=100)

ANNEX 2-A

VALUE OF NET SALES, APRIL - MAY 2002 (concluded)
(1994=100)

Note: * - new sectors in the 1994-based series
Sectors are ranked according to their contribution to the overall 1994-based May 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, APRIL - MAY 2002
(1994=100)

ANNEX 2-B

VOLUME OF NET SALES, APRIL - MAY 2002 (concluded)
(1994=100)

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

Source: National Statistics Office
Manila, Philippines