·  Value of Production decreases at a slower rate

For the month of May, Value of Production Index (VaPI) of the manufacturing industry recorded a two-digit decline of 13.1 percent from its year-ago level of 17.0 percent, according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). Seventeen of 20 major sectors accounted for the decline in production with significant values noted in the following: furniture and fixtures, petroleum products, leather products, paper and paper products, basic metals, beverages, footwear and wearing apparel, machinery except electrical, andwood and wood products. Refer to Tables 1-A and 1.

However, VaPI on a monthly basis grew by 8.3 percent in May 2009 from its previous month's drop of 2.5 percent. This was brought about by increases in production value reported by 18 of 20 major sectors, led by leather products (31.3%). Refer to Tables 1-A and 1.

·  Volume of Production remains at two-digit decline

On a year-on-year basis, Volume of Production Index (VoPI) likewise exhibited a two-digit decrease of 13.0 percent in May 2009. Except for transport equipment and non-metallic mineral products, 18 major sectors reported reductions in volume of production, with two-digit decreases reported by the following: leather products, beverages, paper and paper products, furniture and fixtures, wood and wood products, footwear and wearing apparel, basic metals, machinery except electrical, textiles, petroleum products, and publishing and printing. Refer to Tables 1-B and 2.

On a monthly basis, VoPI accelerated to 8.0 percent in May 2009.This was mainly due to the expansion in production output observed in 17 major sectors, with two-digit increases reported by the following: leather products, transport equipment, basic metals, footwear and wearing apparel, chemical products, tobacco products, beverages, and non-metallic mineral products. Refer to Tables 1-B and 2.

·  Value of Net Sales maintains its negative rate

Value of Net Sales Index (VaNSI) in May 2009 reflected a year-on-year drop of 14.9 percent. Major contributors to the decline were observed in the following: furniture and fixtures, petroleum products, basic metals, paper and paper products, leather products, beverages, textiles, wood and wood products, electrical machinery,and miscellaneous manufactures. Refer to Tables 2-A and 3.

On the other hand, VaNSI rose by 6.1 percent on a month-on-month basis in May 2009, compared with the previous month's decline of 3.7 percent. This was due to the increases in sales value observed in 17 sectors, led by leather products with 50.2 percent growth. Refer to Tables 2-A and 3.

·  Volume of Net Sales decelerates at a slower rate

On a year-on-year change, Volume of Net Sales Index (VoNSI) continued to decrease at a slower rate of 14.8 percent in May 2009. Significant contractions in sales volume were noted in the following major sectors: leather products, wood and wood products, textiles, furniture and fixtures, beverages, basic metals, paper and paper products, footwear and wearing apparel, electrical machinery, petroleum products, and machinery except electrical. Refer to Tables 2-B and 4.

VoNSI, on a monthly comparison, went up by 5.9 percent in May 2009 from its previous month's drop of 4.3 percent. Seven of the 16 major sectors that reported growth in sales output significantly contributed to the increase, namely: leather products, transport equipment, wood and wood products, chemical products, fabricated metal products, tobacco products, and non-metallic mineral products. Refer to Tables 2-B and 4.

·  Capacity Utilization

Average capacity utilization in May 2009 for total manufacturing was estimated at 80.1 percent. Only nine (9) major sectors registered capacity utilization rates of 80% and more, namely: basic metals, food manufacturing, leather products, electrical machinery, miscellaneous manufactures, paper and paper products, chemical products, rubber and plastic products and non-metallic mineral products. Refer to Table 6.

The proportion of establishments that operated at full capacity (90% to 100%) was 10.8 percent in May 2009. About 64.5 percent of the establishments operated at 70% to 89% capacity while 24.7 percent of the establishments operated below 70% capacity.

·  Response Rates

The response rates for the May 2009 MISSI and PPS are 89.3 percent and 93.7 percent, respectively. Refer to Tables 7 and 8

                                                     r-revised

·  Technical Notes

Only the 2000 based series will be continued beginning the July 2008 issue.

Starting with the February 2008 issue, a revised industry disaggregation of the MISSI indices and PPI will be adopted to conform with the amended 1994 PSIC groupings.Rubber and Plastic Products is a new major sector, consisting of two subsectors, namely: Rubber Products and Plastic Products. Rubber Products was previously a major sector while Plastic Products was one of the sub-sectors of Chemical Products.

With previously seven (7) subsectors, the major sector of Chemical Products has now six (6) subsectors, namely: Basic Chemicals and Industrial Gases, Fertilizers, Paints, Drugs and Medicines, Cosmetics and Toilet Preparations, and Miscellaneous Chemicals.

The major sector of Machinery except Electrical has been split into two subsectors, namely: Machinery and Equipment, n.e.c. and Office, Accounting and Computing Machinery.

The corresponding weights of the above major sectors and sub-sectors have been recomputed to allow for the revised computation of the indices.

Starting 2008, weights for the PPI and Capacity Utilization Rates are based from the results of the 2005 Annual Survey of Philippine Business and Industry for manufacturing establishments with average total employment of 20 and over.

Thus, beginning the February 2008 issue, the VaPI, VoPI, VaNSI, VoNSI and the revised PPI for Total Manufacturing for all months of 2008 are computed based on the revised industry disaggregation.

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. 
 

Notes:

* - new sector in the 2000-based series

b/- less than 0.1 percent decrease

Sectors are ranked according to their contribution to the overall 2000-based May 2009 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.

Notes

* - new sector in the 2000-based series

a/ - less than 0.1 percent increase

Sectors are ranked according to their contribution to the overall 2000-based May 2009 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.

Note:

* - new sector in the 2000-based series

Sectors are ranked according to their contribution to the overall 2000-based May 2009 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.

Note:

*  -   new sector in the 2000-based series

Sectors are ranked according to their contribution to the overall 2000-based May 2009 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