• Value of Production grows at a slower pace in May 2012

Value of Production Index (VaPI) for total manufacturing increased at a slower rate of 4.7 percent in May 2012, according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). This was attributed to the diminished production values in furniture and fixtures and publishing and printing. However, a three-digit increase in production values were exhibited by transport equipment and footwear and wearing apparel sectors, registering a growth of 128.8 percent and 121.8 percent, respectively. Refer to Tables 1-A and 1.

On the other hand, on a monthly comparison, VaPI grew to 4.6 percent in May 2012, showing an improvement from its previous month's decline of 9.6 percent. This was contributed by 18 major sectors, with two-digit increase noted in the following: footwear and wearing apparel (23.1%), fabricated metal products (20.0%), machinery except electrical (14.7%), petroleum products (13.4%) and leather products (12.5%). Refer to Tables 1-A and 1.

• Volume of Production increases in May 2012.

On a year-on-year basis, Volume of Production Index (VoPI) likewise posted a minimal increase of 3.1 percent in May 2012. This was accounted for the three-digit growth in production output of footwear and wearing apparel (124.7%), transport equipment (118.2%) and furniture and fixtures (103.4%). Refer to Tables 1-B and 2.

On a month-on-month basis, VoPI recovered as it posted an increase of 4.9 percent in May 2012 from the previous month's drop of 9.1 percent. Among the 16 major sectors that reported increase in production output, five major sectors significantly contributed to the growth, namely: footwear and wearing apparel (23.1%), fabricated metal products (22.2%), petroleum products (19.2%), machinery except electrical (13.8%) and leather products (12.5%). Refer to Tables 1-B and 2.

• Value of Net Sales posts a slower growth

Value of Net Sales Index (VaNSI) on a year-on-year basis increased modestly at 1.0 percent in May 2012. This was attributed to the slowdown in production values of the non-metallic mineral products (4.5%), chemical products (3.2%) and food manufacturing (1.2%). While the major contributing sector with significant increase in value of production was footwear and wearing apparel, with three-digit increment of 116.5 percent. Refer to Tables 2-A and 3.

On a monthly basis, however, VaNSI slightly gained 2.9 percent in May 2012 from a 5.6 percent slide last month. Significant expansion in sales value were reported by six out of 18 major sectors, namely: footwear and wearing apparel (32.7%), leather products (21.6%), furniture and fixtures (17.8%), fabricated metal products (14.3%), textiles (13.5%) and beverages (11.3%). Refer to Tables 2-A and 3.

• Volume of Net Sales declines

Volume of Net Sales Index (VoNSI) slipped to 0.5 percent in May 2012 from a positive rate of 4.8 percent a year ago. This was due to the decline in sales volume exhibited by six major sectors, outpacing the overall increase reported by 14 major sectors. Refer to Tables 2-B and 4.

VoNSI, on a month-on-month change, modestly expanded to 3.1 percent in May 2012 from a 5.1 percent decrease the previous month. Seven of the 17 major sectors significantly contributed to the increase, as follows: footwear and wearing apparel (32.6%), leather products (21.6%), fabricated metal products (16.4%), textiles (13.5%), furniture and fixtures (12.8%), beverages (11.2%) and chemical products (10.4%). Refer to Tables 2-B and 4.

• Capacity Utilization in May 2012

   

Average capacity utilization in May 2012 for total manufacturing stood at 83.5 percent. Eleven of the 20 major sectors registered capacity utilization rates of 80 percent or more, namely:

The proportion of establishments that operated at full capacity (90% to 100%) was 19.1 percent in May 2012. About 58.2 percent of the establishments operated at 70% to 89% capacity while 22.7 percent of the establishments operated below 70% capacity.

• food manufacturing (86.8)
• petroleum products (86.8)
• basic metals (85.6)
• electrical machinery (84.6)
• machinery except electrical (84.6)
• non-metallic mineral products (84.3)
• miscellaneous manufactures (82.9)
• rubber and plastic products (82.7)
• chemical products (82.2)
• paper and paper products (81.0)
• wood and wood products (80.0)

TECHNICAL NOTES

• Introduction

   

The Monthly Integrated of Selected Industries (MISSI) is one of the designated statistical activities undertaken by the National Statistics Office to provide flash indicators on the performance of growth-oriented industries in the manufacturing sector. The survey gathers monthly data on employment, compensation, production, net sales, inventories and capacity utilization.

Beginning with the January 2012 MISSI, the monthly report for the survey will be released earlier, that is, 45 days after each reference month instead of the 55 days.

The indicators generated from the 2012 MISSI are Value of Production Index (VaPI), Volume of Production Index (VoPI), Value of Net Sales (VaNSI), and Volume of Net Sales (VoNSI). However, the VoPI and VoNSI are derived indicators utilizing the 2012 Producer Price Index as deflator.

• Method of Index Computation

The MISSI utilizes the Laspeyres-type method of index computation where the weights are computed from the value of production of the Census of Philippine Business and Industry (CPBI).

For the 2012 MISSI index series with base year of 2000, the weights of the major sectors and sub-sectors were computed from the results of the 2000 CPBI for manufacturing establishments with average total employment of 20 and over. The weights are computed from the value of products sold plus change in inventories.

The formulas in the computation are as follows:

• Industry Coverage

The industry coverage of the 2012 MISSI conforms with the amended 1994 PSIC groupings. There are 20 major sectors as shown below with 10 further disaggregated into sub-sectors.

                                             Note: * - Major sectors categorized into sub-sectors

• Response Rate

The response rates for the May 2012 MISSI and 2012 PPS are 82.2 percent and 91.2 percent, respectively. Refer to Tables 7 and 8