·  Value of Production Index (VaPI) continues to grow

Value of Production Index (VaPI) of the manufacturing industry continued to show upbeat trend with a growth of 10.7 percent in May 2003 compared with year-ago figure, according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). This was brought about by basic metals which expanded by 97.3 percent, followed by other sectors which also posted double-digit increases: wood and wood products, textile, petroleum products, machinery excluding electrical, food manufacturing, paper and paper products, footwear and wearing apparel and publishing and printing (see Table 1-A).

On a month-on-month basis, VaPI managed a growth of 3.1 percent from a decline of (revised) 7.4 percent in April 2003. Significant increases were observed in the following sectors: tobacco, publishing and printing, textile, transport equipment and basic metals (see Table 1-A).

·  Volume of Production Index (VoPI) exhibits growth

Volume of Production Index (VoPI) gained slightly on a year-on-year basis with a 2.6 percent in May 2003. Sectors that largely contributed to the improvement in production were wood and wood products, basic metals, machinery excluding electrical, textile, petroleum products, food manufacturing and publishing and printing (see Table 1-B).

VoPI likewise rose by 2.4 percent on a month-on-month basis from the previous months (revised) 5.7 percent decline. This was due to the notable growth of the following sectors:tobacco, publishing and printing, textile, transport equipment and basic metals (see Annex 1-B)..

·  Value of Net Sales slightly increases

Value of Net Sales in May 2003 posted a 4.5 percent growth on a year-on-year basis. Double-digit increments were observed in the following sectors: machinery excluding electrical, footwear and wearing apparel, textile, petroleum products, furniture and fixtures, food manufacturing and chemical products (see Table 2-A).

On the other hand, Value of Net Sales on a monthly comparison recovered with a 10.4 percent jump in May 2003 from its (revised) 15.0 percent slump in April 2003. Sectors largely contributing to the improved sales performance were the following: publishing and printing, electrical machinery, transport equipment, textile, footwear and wearing apparel, furniture and fixtures, tobacco, wood and wood products and paper and paper products (see Table 2-A).

·  Net Sales Volume continuous to decline

Slowdown in Volume of Net Sales continued as it fell by 4.1 percent in May 2003 compared with a year ago figure. Major sectors that contributed to the slide were tobacco, electrical machinery, paper and paper products, basic metals, leather products and non-metallic mineral products (see Table 2-B).

Compared to the previous month, Net Sales Volume grew by 10.1 percent from a decline of (revised) 13.7 percent in April 2003. The turnaround was due to the resulting growth in the following sectors: publishing and printing, transport equipment, electrical machinery, textile, footwear and wearing apparel, furniture and fixtures, tobacco and wood and wood products (see Table 2-B).

·  Producer's Price Index (PPI) continues to rise

On a year-on-year basis, Producers Price Index (PPI) for total manufacturing went up by 7.9 percent in May 2003. Six sectors that largely contributed to the increase were the following:footwear and wearing apparel, paper and paper products, chemical products, petroleum products, electrical machinery and leather products (see Table 5).

However, PPI on a month-on-month basis for total manufacturing went up by 0.7 percent in May 2003 from a decline of (revised) 1.8 percent in April 2003. Sectors that posted increases in prices were: electrical machinery, footwear and wearing apparel, non-metallic mineral products, basic metals, transport equipment and food manufacturing (see Table 5).

·  Capacity Utilization

Average capacity utilization in May 2003 for total manufacturing was estimated at 78.4 percent. Sectors that posted more than 80% capacity utilization rate were the following: machinery excluding electrical, miscellaneous manufactures, paper and paper products, footwear and wearing apparel, petroleum products and textile (see Table 6).

The proportion of responding establishments that operated at full capacity (90%-100%) in May 2003 was 16.1 percent. About 50.5 percent of the responding establishments operated at 70%-89% capacity and 33.4 percent of the establishments operated below 70% capacity.

DISTRIBUTION OF KEY MANUFACTURING ESTABLISHMENTS
BY CAPACITY UTILIZATION
TOTAL MANUFACTURING, MAY 2003
(In percent)

                                            Note: Details may not add up to 100 due to rounding.

·  Response Rate

The response rate for May 2003 is 90.8 percent, which corresponds to the retrieval of 505 sample establishments reports (see Table 7).

RESPONSE RATES FOR TOTAL MANUFACTURING
(In percent)

·  Technical Notes

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, APRIL - MAY 2003
(1994 =100)

TABLE 1-A. VALUE OF PRODUCTION INDEX, APRIL - MAY 2003(concluded)
(1994=100)

Note: * - new sectors in the 1994-based series 
Sectors are ranked according to their contribution to the overall 1994-based May 2003 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, APRIL - MAY 2003
(1994 = 100)

TABLE 1-B. VOLUME OF PRODUCTION INDEX, APRIL - MAY 2003
(concluded)
(1994=100)

Note: * - new sectors in the 1994-based series 
Sectors are ranked according to their contribution to the overall 1994-based May 2003 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, APRIL - MAY 2003
(1994=100)

TABLE 2-A. VALUE OF NET SALES, APRIL � MAY 2003 (concluded)
(1994=100)

Note: * - new sectors in the 1994-based series 
Sectors are ranked according to their contribution to the overall 1994-based May 2003 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, APRIL - MAY 2003
(1994=100)

TABLE 2-B. VOLUME OF NET SALES, APRIL - MAY 2003(concluded)
(1994=100)

Note: * - new sectors in the 1994-based series 
Sectors are ranked according to their contribution to the overall 1994-based May 2003 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