• Value of Production Index (VaPI) slide continues

Value of Production Index (VaPI) of the manufacturing industry continued its downtrend posting a year-on-year drop of 1.1 percent in October 2002, according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). Sectors that exhibited double-digit decreases were: basic metals, chemical products and rubber products (see Table 1-A).

On a month-on-month basis, VaPI likewise showed a slight decline of 0.2 percent compared to the previous month. The following sectors contributed significantly to the slide: fabricated metal products, beverage and footwear and wearing apparel. (see Table 1-A).

• Volume of Production Index (VoPI) still down

Year-on-year, Volume of Production Index (VoPI) followed its previous trend with a decrease of 5.8 percent in October 2002. Lower production compared to year-ago level was observed in twelve (12) sectors. Basic metals, chemical products, petroleum and publishing and printing registered double-digit drop in production (see Table 1-B).

On a monthly basis, VoPI registered a drop of 0.4 percent due to a dip in production in the fabricated metal products and beverage sectors (see Annex 1-B).

• Value of Net Sales gains further

Year-on-year growth in value of net sales continued to improve as it recorded an increase of 4.2 percent in October 2002. This could be attributed to significant increases in the following sectors: leather products, machinery excluding electrical, textile, tobacco, fabricated metal products, rubber products, footwear and wearing apparel and furniture and fixtures (see Table 2-A).

However, on a month-on-month basis, value of net sales fell by 1.4 percent. Major contributors to the decrease were the following: leather products, beverage, electrical machinery, footwear and wearing apparel and fabricated metal products (see Table 2-A).

• Net Sales Volume falls

Volume of net sales in October 2002 slightly weakened, shrinking by 1.4 percent compared to year-ago figure. Sectors that exhibited double-digit decreases were the following: electrical machinery, publishing and printing, basic metals and wood and wood products (see Table 2-B).

Similarly, volume of net sales on a month-on-month basis registered a drop of 1.6 percent. Significant decreases were observed in the following sectors: leather products, electrical machinery, beverage, footwear and wearing apparel and fabricated metal products (see Table 2-B).

• Producer's Price Index (PPI) keeps increasing trend

The Producer Price Index (PPI) for total manufacturing recorded a year-on-year rise of 5.0 percent in October 2002. Double-digit increases were registered by the following sectors: publishing and printing, 26.7%; wood and wood products, 20.6%; beverage, 14%; electrical machinery, 10.9%; and petroleum products, 10.3% (see Table 5).

On a month-on-month basis, PPI for total manufacturing exhibited similar movement at a slower rate of 0.3 percent. Sectors contributing to the increase were the following: petroleum products, miscellaneous manufactures and paper and paper products (see Table 5)..

• Capacity Utilization

Average capacity utilization for total manufacturing in October 2002 was estimated at 75.8 percent. Sectors with capacity utilization rate of 80% or over were the following: petroleum products, machinery excluding electrical, paper and paper products, miscellaneous manufactures, and rubber products (see Table 6).

The proportion of responding establishments that operated at full capacity (90%-100%) in October 2002 was 21.3 percent. About 39.6 percent of the responding establishments operated at 70%-89% capacity and 39.0 percent of the establishments operated below 70% capacity.

DISTRIBUTION OF KEY MANUFACTURING ESTABLISHMENTS
BY CAPACITY UTILIZATION
TOTAL MANUFACTURING, OCTOBER 2002
(In percent)

• Response Rate

For October 2002, the response rate is 86.2 percent, which corresponds to the retrieval of 500 sample establishments' reports (see Table 7).

RESPONSE RATES FOR TOTAL MANUFACTURING
(In percent)

• Technical Notes

Data of nonresponding 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, SEPTEMBER - OCTOBER 2002
(1994 =100)

TABLE 1-A. VALUE OF PRODUCTION INDEX, SEPTEMBER - OCTOBER 2002 (concluded)

Note: * - New sectors in the 1994-based series
Sectors are ranked according to their contribution to the overall 1994-based October 2002 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, SEPTEMBER - OCTOBER 2002
(1994 = 100)

TABLE 1-B. VOLUME OF PRODUCTION INDEX, SEPTEMBER - OCTOBER 2002 (concluded)

Note: * - New sectors in the 1994-based series
Sectors are ranked according to their contribution to the overall 1994-based October 2002 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, SEPTEMBER - OCTOBER 2002
(1994=100)

TABLE 2-A. VALUE OF NET SALES, SEPTEMBER - OCTOBER 2002 (concluded)
(1994=100)

Note: * - New sectors in the 1994-based series
Sectors are ranked according to their contribution to the overall 1994-based October 2002 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, SEPTEMBER - OCTOBER 2002

TABLE 2-B. VOLUME OF NET SALES, SEPTEMBER - OCTOBER 2002 (concluded)
(1994=100)

Note: * - New sectors in the 1994-based series
Sectors are ranked according to their contribution to the overall 1994-based October 2002 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