r -revised

·  Value of Production Index (VaPI) continues to gain

Value of Production Index (VaPI) for the manufacturing industry on a year-on-year basis continued to improve at a slower rate of 3.1 percent in May 2004, from an increase of (revised) 4.9 percent recorded during the previous month, according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). Sectors that posted double-digit increases were rubber products, fabricated metal products, furniture and fixtures, electrical machinery, transport equipment, chemical products, food manufacturing and non-metallic mineral products. Refer to Table 1-A.

Likewise, VaPI on a month-on-month basis continued to rise as it posted an increase of 2.4 percent in May 2004. Notable increases were shown bytransport equipment, leather products, tobacco, non-metallic mineral products, furniture and fixtures, miscellaneous manufactures and fabricated metal products. Refer to Table 1-A.

·  Volume of Production Index (VoPI) shows no improvement

Compared to the year-ago figure, Volume of Production Index (VoPI) was still on its downtrend at 1.6 percent in May 2004. This was brought about by the contraction in output of the following sectors: leather products, footwear and wearing apparel, petroleum products, basic metals, tobacco and textile. Refer to Table 1-B.

However, on a monthly comparison, VoPI climbed by 3.0 percent in May 2004. Sectors that significantly contributed to the increase were transport equipment, leather products, tobacco, non-metallic mineral products, furniture and fixtures, miscellaneous manufactures and fabricated metal products. Refer to Table 1-B.

·  Value of Net Sales keeps upswing

On a year-on-year basis, Value of Net Sales in May 2004 posted an increase of 8.4 percent. Basic metals, rubber products, electrical machinery, fabricated metal products, food manufacturing, miscellaneous manufactures and non-metallic mineral products contributed significant increments. Refer to Table 2-A.

Similarly, month-on-month Value of Net Sales in May 2004 recovered by 3.5 percent from a drop of (revised) 4.7 percent during the previous month. Sectors that mainly influenced the increase were footwear and wearing apparel, leather products, furniture and fixtures and food manufacturing. Refer to Table 2-A..

·  Volume of Net Sales drops

Volume of Net Sales fell by 0.9 percent in May 2004 compared with year ago figure. Footwear and wearing apparel contributed much to the decline (52.0 percent). Other sectors that posted double-digit decreases were petroleum products, tobacco, transport equipment and machinery excluding electrical. (see Table 2-B).

On the other hand, Volume of Net Sales on a month-on-month basis picked up by 3.0 percent in May 2004. This was due to the improved sales performance of the following sectors: footwear and wearing apparel, leather products, furniture and fixtures and food manufacturing. Refer to Table 2-B.

·  Producer�s Price Index (PPI) maintains increasing trend

The Producer�s Price Index (PPI) for total manufacturing on a year-on-year basis reported an increment of 4.9 percent in May 2004. Sectors that exhibited significant increases were the following: footwear and wearing apparel, basic metals, petroleum products, food manufacturing and non-metallic mineral products. Refer to Table 5..

On a monthly basis, PPI for total manufacturing declined by 0.6 percent in May 2004. Sectors that pulled down the PPI were the following: electrical machinery, textile, footwear and wearing apparel, wood and wood products, rubber products, paper and paper products, transport equipment, non-metallic mineral products, miscellaneous manufactures and furniture and fixtures. Refer to Table 5..

·  Capacity Utilization

Average capacity utilization in May 2004 for total manufacturing was estimated at 79.4 percent. Sectors that posted more than 80% capacity utilization rate were the following: machinery excluding electrical, leather products, electrical machinery, paper and paper products, rubber products, miscellaneous manufactures, petroleum products, food manufacturing and basic metals. Refer to Table 6..

The proportion of responding establishments that operated at full capacity (90%-100%) in May 2004 was 14.0 percent. More than half or 51.2 percent of the responding establishments operated at 70%-89% capacity and 34.8 percent of the establishments operated below 70% capacity.

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

·  Response Rate

The response rate for May 2004 is 88.5 percent, which corresponds to the retrieval of 476 sample establishments� reports. Refer to 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, April-May 2004
(1994 =100)

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

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

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

TABLE 1-B. VOLUME OF PRODUCTION INDEX, April - May 2004
(concluded)
(1994=100)

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

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

TABLE 2-A. VALUE OF NET SALES, April - May 2004 (concluded)
(1994=100)

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

Sectors are ranked according to their contribution to the overall 1994-based May 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-B. VOLUME OF NET SALES, April - May 2004
(1994=100)

TABLE 2-B. VOLUME OF NET SALES, April - May 2004 (concluded)
(1994=100)

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

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

Source:   National Statistics Office
                 Manila, Philippines