Monthly Integrated Survey of Selected Industries : November 1999

Reference Number: 

2000-005

Release Date: 

Tuesday, January 25, 2000

 

 
Slowdown in Production

After posting year-on year consecutive growths from August to October 1999, production in the manufacturing industry slowed down as shown by the negative growths in the volume (-11.7%) and value (-6.0%) of production according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI).

This is an indication that some sectors had built up inventory from production in prior months only to draw down from their existing inventories to meet increasing demand as the holiday season drew near.

The dips were seen in consumer-oriented manufactures (food, beverages, textile and wearing apparel), industry inputs (chemicals/plastic products, petroleum products), construction-related commodities (basic metals, wood & wood products and non-metallic mineral products) and export-oriented manufactures (electrical machinery).

Inspite of the slack in their production, sectors like petroleum, food, electrical machinery, chemicals, non-metallic minerals and wood & wood products exhibited growths in their volume of net sales. These sectors appeared to have drawn down from their existing inventories.

 
Production and Net Sales Grew in Four Sectors

Positive growths in both volumes of production and net sales were observed in transport equipment, paper & paper products, furniture & fixtures, and miscellaneous manufactures.

 
Capacity Utilization Still at Low Rate

Of the responding establishments, 43.1 percent operated below 70 percent capacity. Nine out of 16 sectors reflected declined use of their capacity in November 1999.

 
Value of Production

In November 1999, the value of production index (VaPI) of 425.2 decreased by 6.0 percent from 452.3 in November 1998. Year-on-year decreases were observed in 8 out of 16 major sectors (See Annex 1-A). Basic metals which has declined since August 1998 turned in the biggest year-on-year decrease (-41.9%) in the overall VaPI. This can be attributed to the decrease of 65.1 percent in the production of iron and steel. Other sectors that posted double-digit decreases were wearing apparel (-31.7%), textile (25.6%), electrical machinery (-25.5%), wood & wood products (-18.2%), and food manufacturing (-12.2%). The slowdown in production in some of these sectors can be attributed to low demand, lack of raw materials, and labor problems which resulted to closure of some plants and partial shutdown of machinery. The negative performance of electrical machinery however was due to lower price value of the manufactured product.

On the other hand, transport equipment recorded the highest year-on-year increase of 55.7 percent in the value of production. Other sectors which exhibited double-digit year-on-year increases were rubber products (45.8%), furniture & fixtures (39.2%), miscellaneous manufactures (37.7%), tobacco (31.1%), and paper & paper products (21.2%).

 
Volume of Production

The volume of production index (VoPI) for total manufacturing declined by 11.7 percent to 116.4 from 131.8 of the same month last year. Ten out of 16 sectors posted year-on year decreases led by basic metals which decreased by 44.6 percent (See Annex 1-B). Other sectors which contributed to the negative performance were textile (-38.1%), wearing apparel (-36.9%), electrical machinery (-25.8%), petroleum refineries (-18.0%), wood & wood products (-16.9%), non-metallic mineral products (-16.2%), beverage (-14.5%), food manufacturing (-8.5%) and chemicals/plastic & plastic products (-0.9%).

On the other hand, sectors which showed increases in the volume of production were transport equipment (49.8%), miscellaneous manufactures (48.9%), furniture & fixtures (35.4%), tobacco (34.1%), rubber products (24.6%), and paper & paper products (3.4%). The improvements in these sectors can be attributed to the resumption of operation of some key establishments and increase in demand for their products.

 
Value of Net Sales

The value of net sales for November 1999 increased by 18.2 percent compared to last year. Eleven out of 16 sectors posted increases led by petroleum products which posted a year-on-year growth of 47.4 percent (See Annex 2-A). Other sectors that recorded double-digit increases were non-metallic mineral products (38.5%), miscellaneous manufactures (37.1%), furniture and fixtures (31.0%), electrical machinery (26.2%), paper products (20.2%), transport equipment (16.5%), food manufacturing (15.9%), beverages (15.4%), and chemicals (15.3%).

On the other hand, basic metals posted the biggest decline of 29.3 percent. Other sectors that exhibited decreases in their value of net sales were tobacco (-19.9%), textile (-9.1%), rubber products (-7.7%), and wood and wood products (-1.6%).

 
Volume of Net Sales

The volume of net sales for November 1999 posted an increase of 8.9 percent over the same month last year. Increases were observed in 10 out of 16 sectors led by miscellaneous manufactures which increased by 48.3 percent (See Annex 2-B). Other sectors that posted double-digit year-on-year growths were furniture & fixtures (27.4%), electrical machinery (25.7%), non-metallic mineral products (20.8%), food manufacturing (20.8%), petroleum products (14.5%), transport equipment (12.1%), and chemicals (10.1%)

On the other hand, decreases were observed in 6 out of 16 sectors led by basic metals which decreased by 26.6 percent. Other sectors that decreased were textile (-24.4%), rubber products (-21.1%), tobacco (-18.1%), wearing apparel (-2.6%), and beverages (-1.0%).

 
Capacity Utilization

The proportion of responding establishments that operated below 70 percent capacity was estimated at 43.1 percent in November 1999 compared to the 39.1 percent in November 1998. About 16.5 percent operated at full capacity (90%-100%) compared to 18.1 percent a year ago.

Declines in capacity utilization were observed in the following sectors: beverage, textile, wearing apparel, wood & wood products, furniture & fixtures, paper & paper products, chemicals, rubber products and non-metallic mineral products. On the other hand, food, tobacco, petroleum, basic metals and miscellaneous manufactures showed indications of increasing capacity utilization. Capacity utilization is defined as the ratio of output to the maximum rated capacity of the plant.

 
Response Rate

These results were based on the response of 379 sample establishments, which comprised 68.5 percent of the total number of establishments covered by the survey.

 

ANNEX 1-A

VALUE OF PRODUCTION INDEX (NOVEMBER 1999)
YEAR-ON-YEAR GROWTH (%)
NOVEMBER OCTOBERr
GAINERS
Transport Equipment
Petroleum Refineries
Paper & Paper Products
Rubber Products
Chemicals/Plastic & Plastic Prods.
Furniture & Fixtures
Other Mfg. Industries
Tobacco
 
55.7
5.6
21.2
45.8
3.8
39.2
37.7
31.1
 
76.7
31.8
13.4
8.2
-15.1
-21.7
6.6
24.6
LOSERS
Basic Metals
Electrical Machinery
Food Manufacturing
Wearing Apparel
Textile
Wood & Wood Products
Non-Metallic Mineral Prods.
Beverage
 
-41.9
-25.5
-12.2
-31.7
-25.6
-18.2
-9.2
-0.3
 
-16.3
13.8
19.3
-25.3
-8.5
4.1
0.6
12.4
 
MONTH-ON-MONTH
 
   
GAINERS
Chemicals/Plastic & Plastic Prods.
Furniture & Fixtures
Rubber Products
Other Mfg. Industries
 
8.4
81.3
13.8
21.0
 
-0.7
-20.5
9.5
43.7
LOSERS
Electrical Machinery
Petroleum Refineries
Food Manufacturing
Basic Metals
Textile
Wearing Apparel
Transport Equipment
Non-Metallic Mineral Prods.
Wood & Wood Products
Paper & Paper Products
Beverage
Tobacco
 
-42.0
-18.6
-9.8
-20.3
-19.8
-14.6
-15.3
-14.5
-8.2
-4.2
-4.2
-1.4
 
-7.5
7.5
6.2
5.0
-4.1
-11.5
26.9
1.1
-24.0
12.2
4.2
16.9

Note: Sectors are ranked according to their contribution to the overall NOVEMBER 1999 growth rate.
r - revised due to updating of data from late responding establishments.

 

ANNEX 1-B

VOLUME OF PRODUCTION INDEX (NOVEMBER 1999)
YEAR-ON-YEAR GROWTH (%)
NOVEMBER OCTOBERr
GAINERS
Transport Equipment
Rubber Products
Furniture & Fixtures
Other Mfg. Industries
Paper & Paper Products
Tobacco
 
49.8
24.6
35.4
48.9
3.4
34.1
 
71.6
-7.7
-23.8
16.9
-1.9
27.4
LOSERS
Petroleum Refineries
Basic Metals
Electrical Machinery
Wearing Apparel
Textile
Food Manufacturing
Non-Metallic Mineral Prods.
Beverage
Wood & Wood Products
Chemicals/Plastic & Plastic Prods.
 
-18.0
-44.6
-25.8
-36.9
-38.1
-8.5
-16.2
-14.5
-16.9
-0.9
 
3.0
-13.0
14.4
-26.1
-24.3
22.2
-6.5
-2.8
5.9
-20.0
 
MONTH-ON-MONTH
 
   
GAINERS
Chemicals/Plastic & Plastic Prods.
Furniture & Fixtures
Rubber Products
Other Mfg. Industries
 
7.5
81.3
13.9
21.6
 
-1.0
-20.5
9.8
42.9
LOSERS
Electrical Machinery
Petroleum Refineries
Food Manufacturing
Basic Metals
Textile
Wearing Apparel
Non-Metallic Mineral Prods.
Transport Equipment
Beverage
Wood & Wood Products
Paper & Paper Products
Tobacco
 
-42.6
-21.4
-9.9
-24.9
-19.4
-16.4
-13.8
-15.6
-4.2
-8.2
-4.6
-1.4
 
-5.8
4.0
6.0
3.3
-4.4
-9.9
6.7
26.8
4.7
-24.0
12.0
16.9

Note: Sectors are ranked according to their contribution to the overall NOVEMBER 1999 growth rate.
r - revised due to updating of data from late responding establishments.

 

ANNEX 2-A

NET SALES VALUE (NOVEMBER 1999)
YEAR-ON-YEAR GROWTH (%)
NOVEMBER OCTOBERr
GAINERS
Petroleum Products
Food Manufacturing
Electrical Machinery
Chemicals
Non-metallic mineral products
Paper & paper products
Transport equipment
Wearing Apparel
Beverages
Furniture & Fixtures
Miscellaneous Manufacturer
 
47.4
15.9
26.2
15.3
38.5
20.2
16.5
5.4
15.4
31.0
37.1
 
54.7
8.9
58.3
32.4
9.4
5.5
-63.1
-23.1
10.9
-13.9
84.0
LOSERS
Basic metals
Textile
Rubber products
Wood & wood products
Tobacco
 
-29.3
-9.1
-7.7
-1.6
-19.9
 
-0.8
2.1
13.0
97.6
-2.8
 
MONTH-ON-MONTH
 
   
GAINERS
Food Manufacturing
Paper & paper products
Furniture & Fixtures
Miscellaneous Manufacturer
Beverages
Rubber products
Tobacco
 
11.3
13.0
35.0
46.0
3.7
1.4
0.6
 
-1.4
11.2
-9.3
8.6
12.4
7.3
-6.2
LOSERS
Electrical Machinery
Petroleum Products
Transport equipment
Wearing Apparel
Textile
Chemicals
Basic metals
Wood & wood products
Non-metallic mineral products
 
-23.0
-7.2
-13.9
-7.5
-7.8
-4.0
-2.8
-5.0
-1.0
 
17.4
11.4
-57.0
-23.9
0.7
13.7
-5.4
-16.7
15.5

Note: Sectors are ranked according to their contribution to the overall NOVEMBER 1999 growth rate.

 

ANNEX 2-B

NET SALES VOLUME (NOVEMBER 1999)
YEAR-ON-YEAR GROWTH (%)
NOVEMBER OCTOBER
GAINERS
Food Manufacturing
Petroleum Products
Electrical Machinery
Chemicals
Non-metallic mineral products
Transport equipment
Miscellaneous Manufacturer
Furniture & Fixtures
Paper & paper products
Wood & wood products
 
20.8
14.5
25.7
10.1
20.8
12.1
48.3
27.4
2.6
0.0
 
10.6
18.4
60.6
23.9
-5.4
-65.8
107.0
-16.3
-11.4
100.9
LOSERS
Basic metals
Textile
Rubber products
Wearing Apparel
Tobacco
Beverages
 
-26.6
-24.4
-21.1
-2.6
-18.1
-1.0
 
8.4
-16.3
-4.2
-21.0
-0.7
-4.2
 
MONTH-ON-MONTH
 
   
GAINERS
Food Manufacturing
Paper & paper products
Miscellaneous Manufacturer
Furniture & Fixtures
Beverages
Rubber products
Tobacco
 
11.2
12.6
46.7
35.0
3.7
1.4
0.6
 
-1.3
11.1
8.0
-9.3
13.0
7.6
-6.2
LOSERS
Electrical Machinery
Petroleum Products
Transport equipment
Wearing Apparel
Chemicals
Textile
Wood & wood products
Basic metals
Non-metallic mineral products
 
-23.8
-10.4
-14.2
-9.5
-4.7
-7.4
-5.0
-2.4
-1.0
 
19.6
7.7
-57.1
-22.5
13.4
0.4
-16.7
-6.4
15.4

Note: Sectors are ranked according to their contribution to the overall NOVEMBER 1999 growth rate.

 

ANNEX 3
Distribution of Key Enterprise by Capacity Utilization
(In percent)

Capacity
  Utilization  
1998 1999
NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV

 Below 50 % 

50 - 59 %

60 - 69 %

70 - 79 %

80 - 89 %

90 - 100 %

13.1

10.5

15.5

21.0

21.8

18.1

12.5

12.5

15.9

20.3

23.5

15.4

12.3

12.3

15.3

21.9

21.6

16.8

13.8

11.6

16.4

22.6

22.0

13.5

14.3

10.6

14.3

22.1

22.6

16.0

14.4

10.6

17.1

22.6

20.6

14.7

12.8

10.8

14.8

22.8

22.5

16.2

22.5

9.0

13.3

19.0

21.0

15.3

21.6

8.8

13.3

19.9

20.6

15.7

23.0

10.1

12.6

22.0

19.3

13.1

28.3

8.0

12.4

20.1

17.1

14.1

30.2

5.8

14.5

18.4

16.9

14.3

16.5

9.8

16.8

21.8

18.7

16.5


 

ANNEX 4
Percentage Changes in Production and Net Sales of
Key Enterprises: November 1998 - November 1999

ITEM NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV

Year-on-Year Change
Production
  Value 
  Volume 
Net Sales 
  Value
  Volume
 
-18.2r
-25.1r
  
-10.7
-16.1
 
-9.0r
-14.4r
  
-5.2
-6.0
 
-4.3r
-6.4r
  
-12.2
-19.0
 
-0.9r
-2.5r
  
-11.1
-13.8
 
8.7r
5.0r
  
-1.7
-4.9
 
8.8r
4.4r
  
2.1
1.4
 
8.4r
4.4r
  
-1.3
-4.4
 
3.0r
-1.4r
  
2.0
-3.0
 
1.7r
-2.8r
  
3.1
-5.8
 
20.4r
13.9r
  
1.4
-4.8
 
9.5r
3.0r
  
20.1
11.9
 
18.2r
11.1r
  
22.9
13.5
 
-6.0
-11.7
  
18.2
8.9
Month-on-Month Change
Production
  Value 
  Volume 
Net Sales 
  Value
  Volume
 
-2.4r
-3.1r
  
1.7
0.5
 
-5.8r
-4.6r
  
1.9
1.5
 
4.6r
3.6r
  
-2.7
-10.2
 
7.7r
7.0r
  
31.3
33.9
 
11.2r
10.9r
  
8.0
2.9
 
-11.9r
-13.0r
  
-6.6
-3.9
 
4.8r
4.5r
  
7.0
6.4
 
4.3r
3.2r
  
3.7
0.6
 
-4.8r
-4.8r
  
2.5
-0.3
 
14.0r
13.0r
  
-2.8
-3.9
 
-4.2r
-5.2r
  
12.6
11.1
 
2.5r
2.2r
  
1.6
1.1
 
-22.3r
-22.9r
  
-2.9
-3.8

r - revised due to updating of data from late responding establishments.

 Source: National Statistics Office
Manila, Philippines

Attachment: 

Tags: