r-revised

·  Value of Production drops in May 2007

Value of Production Index (VaPI) for the manufacturing industry slumped by 5.5 percent in May 2007 compared with the year-ago figure, according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). Eleven (11) major sectors reported decreases in production value, with two-digit year-on-year decreases in the following: textiles, machinery excluding electrical, leather products, basic metals, tobacco, miscellaneous manufactures and electrical machinery. Refer to Tables 1-A and 1 .

Meanwhile, VaPI on a monthly basis posted month-on-month increase of 2.0 percent in May 2007. Fifteen (15) of the 20 major sectors registered increase in production value, with two-digit increases observed in the following: tobacco, transport equipment, miscellaneous manufactures, beverages, fabricated metal products, footwear and wearing apparel and furniture and fixtures. Refer to Tables 1-A and 1.

·  Volume of Production Index (VoPI) dips further

Volume of Production Index (VoPI) continued its downtrend as it posted a year-on-year decrease of 7.1 percent in May 2007. Major sectors that significantly contributed to the decline were the following: textiles, basic metals, machinery excluding electrical, leather products, tobacco, miscellaneous manufactures and footwear and wearing apparel. Refer to Tables 2 and 1-B.

On a month-on-month comparison, VoPI posted a slight gain of 1.6 percent in May 2007. This was brought about by the two-digit expansion in factory output reported by the following major sectors: tobacco, transport equipment, miscellaneous manufactures, beverages, furniture and fixtures and footwear and wearing apparel. Refer to Tables 2 and 1-B.

·  Value of Net Sales levels off in May 2007

On a yearly basis, performance of Net Sales (in terms of value) was flat in May 2007 compared to an increase of 3.3 percent during the previous month. Ten (10) of the 20 major sectors reported increases, with two-digit increments observed in the following: rubber products, beverages, tobacco and transport equipment. While the remaining 10 major sectors posted declines, two-digit decreases were observed in the following: leather products, textiles, basic metals, machinery excluding electrical, footwear and wearing apparel and furniture and fixtures. Refer to Tables 2-A and 3.

On a month-on-month comparison, Value of Net Sales recovered with a 4.2 percent increase from a drop of 7.4 percent in April 2007. Seventeen (17) of the 20 major sectors registered increase in sales, with two digit increases observed in the following: tobacco, furniture and fixtures, leather products, transport equipment, beverages and basic metals. Refer to Tables 2-A and 3.

·  Volume of Net Sales falls

Volume of Net Sales reflected a year-on-year decline of 1.9 percent from a slight increase (revised) of 1.1 percent in May 2007. This was brought about by the poor sales performance of 10 major sectors, with two-digit decreases reported by the following: leather products, textiles, footwear and wearing apparel, basic metals, machinery excluding electrical and publishing and printing. Refer to Tables 2-B and 4.

However, Volume of Net Sales on a monthly basis grew by 3.4 percent in May 2007 from its previous month's (revised) decline of 7.3 percent. This was due to the increases reported by 17 major sectors, with two-digit increases noted in the following: tobacco, furniture and fixtures, leather products, transport equipment and beverages. Refer to Tables 2-B and 4.

·  Capacity Utilization

Average capacity utilization in May 2007 for total manufacturing was estimated at 80.2 percent. Sectors that registered more than 80% capacity utilization rates were the following: machinery excluding electrical, petroleum products, basic metals, miscellaneous manufactures, paper and paper products, leather products, electrical machinery, rubber products, chemical products and food manufacturing. Refer to Table 6. .

The proportion of establishments that operated at full capacity (90% to 100%) was 11.0 percent in May 2007. More than half or 57.2 percent of the establishments operated at 70% to 89% capacity and 31.8 percent of the establishments operated below 70% capacity.

Distribution of Key Manufacturing Establishments by Capacity Utilization
Total Manufacturing, May 2007
(In percent)

·  Response Rates

The response rates for the May 2007 MISSI and PPS are 89.1 percent and 92.5 percent, respectively. Refer to Tables 7 and 8.

Response Rates for Total Manufacturing
(In percent)

                       r-revised

·  Technical Notes

Starting 2006, weights for the Producer Price Index (PPI) are based from the results of the 2003 Annual Survey of Philippine Business and Industry (ASPBI) for manufacturing establishments with average total employment (ATE) of 20 and over.

Data of non-responding 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 2007 - May 2007
(1994 =100)

TABLE 1-A. VALUE OF PRODUCTION INDEX, April 2007 - May 2007
(concluded)
(1994=100)

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

Sectors are ranked according to their contribution to the overall 1994-based May 2007 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 2007 - May 2007
(1994 = 100)

TABLE 1-B. VOLUME OF PRODUCTION INDEX, April 2007 - May 2007
(concluded)
(1994=100)

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

Sectors are ranked according to their contribution to the overall 1994-based May 2007 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 2007 - May 2007
 

TABLE 2-A. VALUE OF NET SALES, April 2007 - May 2007(concluded)
 

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

Sectors are ranked according to their contribution to the overall 1994-based May 2007 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 2007 - May 2007
 

TABLE 2-B. VOLUME OF NET SALES, April 2007 - May 2007 (concluded)
 

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

Sectors are ranked according to their contribution to the overall 1994-based May 2007 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