Table A   Year-on-Year Growth Rates for Production Index, Net Sales Index and Producer Price Index:

November and October 2012

                                              r - revised

•    Value of Production Index increases at a slower rate in November 2012

Value of Production Index (VaPI) of the manufacturing industry expanded moderately at 6.3 percent in November 2012, according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). This maybe attributed to the slowdown in production growth notably for the basic metals  sector. However, expansion in value of production was exhibited by footwear and wearing apparel with a three-digit increase of 137.9 percent, followed by other four major sectors that posted two-digit increments, namely: leather products (27.9%), wood and wood products (26.4%), transport equipment (26.2%) and food manufacturing (12.4%). Refer to Tables 1-A and 1.

On the other hand, VaPI on a monthly basis, slid 1.2 percent in November 2012. This was mainly due to the reduction in production values reported by 14 out of 20 major sectors. Refer to Tables 1-A and 1.

•    Volume of Production grows at a slower pace in November 2012

Volume of Production Index (VoPI), on a year-on-year change, slightly moved up at a slower growth rate of 9.6 percent in November 2012. This was mainly due to the slowdown in production outputs of the electrical machinery and basic metals sectors. However, high production outputs were reported by eight (8) out of 13 major sectors led by footwear and wearing apparel, registering a three-digit increase of 144.2 percent. Other major sectors with two-digit increases were observed in the following: wood and wood products (42.4%), leather products (31.6%), transport equipment (22.6%), machinery except electrical (14.7%), basic metals (12.1%), paper and paper products (10.9%) and electrical machinery (10.6%). Refer to Tables 1-B and 2.

VoPI, however, on a month-on-month comparison slightly dropped by 0.4 percent in November 2012. This was due to the decreases in production output observed in 12 out of 20 major sectors.Refer to Tables 1-B and 2.

•    Value of Net Sales exhibits positive rate in November 2012

Value of Net Sales Index (VaNSI) continued to grow, reflecting an annual  increment of 9.2 percent in November 2012.The major contributing factor was the expansion in sales of 15 major sectors of manufacturing industry led by footwear and wearing apparel, with a three-digit growth of 150.9 percent. This was followed by other eight major sectors that posted two-digit increases, namely: non-metallic mineral products (51.2%), textiles (38.5%), electrical machinery (34.5%), publishing and printing (22.9%), transport equipment (19.2%), miscellaneous manufactures (18.2%), food manufacturing (15.9%) and wood and wood products (11.3%). Refer to Tables 2-A and 3.

On a monthly basis, VaNSI went down 2.5 percent in November 2012. Nine major sectors reported a month-on-month decreases in sales value, led by electrical machinery with 10.2 percent decline. Refer to Tables 2-A and 3.

•    Volume of Net Sales displays an increasing trend

Volume of Net Sales Index (VoNSI) continued a two-digit growth rate, registering at 12.6 percent in November 2012. Footwear and wearing apparel contributed significantly to the increase with 157.5 percent growth, followed by eight major sectors that registered two-digit growth in net sales volume, namely: electrical machinery (52.5%), non-metallic mineral products (49.0%), textiles (37.1%), wood and wood products (25.3%), miscellaneous manufactures (23.1%), machinery except electrical (18.6%), publishing and printing (15.9%) and transport equipment (15.8%). Refer to Tables 2-B and 4.

On a month-on-month comparison, VoNSI fell 1.7 percent in November 2012. This was due to decline in sales output of eight major sectors, offsetting the increases reported by 12 major sectors. Refer  to  Tables 2-B and 4.

•    Capacity Utilization in November 2012 is 83.3 percent

Average capacity utilization in November 2012 for total manufacturing stood at 83.3 percent. Eleven of the 20 major sectors registered capacity utilization rates of 80 percent or more, namely:

• petroleum products (87.9%)
• basic metals (87.7%)
• food manufacturing (87.1%)
• non-metallic mineral products (84.3%)
• machinery except electrical (84.0%)
• electrical machinery (83.4%)
• rubber and plastic products (82.5%)
• chemical products (82.2%)
• paper and paper products (81.7%)
• miscellaneous manufactures (81.1%)
• wood and wood products (80.4%).

The proportion of establishments that operated at full capacity (90% to 100%) was 19.4 percent in November 2012.  About 57.2 percent of the establishments operated at 70% to 89% capacity while 23.4 percent of the establishments operated below 70% capacity. Refer to Table 6.

Table B  Distribution of Key Manufacturing Establishments by Capacity Utilization for Total Manufacturing:

November 2012

TECNICAL NOTES

•    Introduction

The Monthly Integrated Survey of Selected Industries (MISSI) is one of the designated statistical activities undertaken by the National Statistics Office with the objective of providing 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 was 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:

           Value of Production Index (VaPI)

•    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.

•    Response Rate

The response rates for the November 2012 MISSI and PPS are 75.2 percent and 92.1 percent, respectively.  Refer to Tables 7 and 8.

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.

(Sgd) CARMELITA N. ERICTA
              Administrator

TABLE 1-A  Value of Production Index, October – November 2012

   (2000 =100)

  TABLE 1-A  Value of Production Index, October – November 2012

(2000 = 100) (concluded)

TABLE 1-B  Volume of Production Index, October – November 2012

(2000 = 100)

TABLE 1-B  Volume of Production Index, October – November 2012

(2000 = 100) (concluded)

TABLE 2-A  Value of Net Sales Index, October – November 2012

(2000 =100)

TABLE 2-A  Value of Net Sales Index, October – November 2012

(2000 = 100) (concluded)

TABLE 2-B  Volume of Net Sales Index, October – November 2012

(2000 = 100)

TABLE 2-B  Volume of Net Sales Index, October – November 2012

(2000 = 100) (concluded)