·  Value of Production Index (VaPI) exhibits growth

Value of Production Index (VaPI) of the manufacturing industry continued to pick up at 3.6 percent in October 2003 compared with year-ago figure, according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). Basic metals led all sectors with an increase of 216.2 percent, followed by textile and miscellaneous manufactures sectors (see Table 1-A).

VaPI, on a month-on-month comparison, bounced back with a 2.2 percent growth from the previous month�s (revised) 0.1 percent decline. The turnaround was due to the notable increase in the following sectors: electrical machinery, rubber products, nonmetallic mineral products, food manufacturing, tobacco and paper and paper products (see Table 1-A).

·  Volume of Production Index (VoPI) still down

On a year-on-year basis, Volume of Production Index (VoPI) continued its downtrend with a decrease of 4.0 percent in October 2003. Sectors contributing to the lower production were the following: leather products, tobacco, footwear and wearing apparel, nonmetallic mineral products, paper and paper products, chemical products and fabricated metal products (see Table 1-B).

However, VoPI on a monthly comparison registered a 1.0 percent jump in October 2003 from its (revised) 1.5 percent slump in the previous month. Double-digit expansions in production were reported by the following sectors: rubber products, electrical machinery, nonmetallic mineral products, food manufacturing, tobacco and paper and paper products (see Annex 1-B).

·  Value of Net Sales continues upbeat trend

Value of Net Sales continued to step up at 9.8 percent over the year ago figure. This was boosted by the double-digit increases of the following sectors: basic metals, non- metallic mineral products, publishing and printing, electrical machinery, petroleum products, furniture and fixtures, machinery excluding electrical and miscellaneous manufactures (see Table 2-A).

On a monthly basis, Value of Net Sales grew by a slim 0.8 percent from the previous months decrease of (revised) 1.0 percent. This was brought about by observed increments in the following sectors: basic metals, nonmetallic mineral products, rubber products, leather products, furniture and fixtures andtobacco (see Table 2-A).

·  Net Sales Volume expands

On a year-on-year basis, Net Sales Volume went up by 1.1 percent from a (revised) 0.4 percent drop in September 2003. Major contributors to the increase were the following sectors: basic metals, wood and wood products, publishing and printing, furniture and fixtures, machinery excluding electrical and nonmetallic mineral products (see Table 2-B).

Compared to the previous month, Volume of Net Sales posted a slight increase of 0.2 percent from a decrease of (revised) 1.9 percent recorded in September 2003. The growth could be attributed to the improved sales performance of the following sectors: basic metals, nonmetallic mineral products, rubber products, leather products, furniture and fixtures and tobacco (see Table 2-B)..

·  Producers Price Index (PPI) registers increase

Producers Price Index (PPI) for total manufacturing on a year-on-year comparison posted an increment of 7.9 percent in October 2003. Footwear and wearing apparel topped all sectors with an increase of 24.9 percent. Other sectors with double-digit increases were: chemical products, electrical machinery, leather products, and paper and paper products (see Table 5).

On a monthly basis, PPI for total manufacturing also went up at a slower rate of 1.1 percent in October 2003. The top four sectors that contributed to the increase were as follows: electrical machinery, footwear and wearing apparel, petroleum products and textile (see Table 5).

·  Capacity Utilization

Average capacity utilization in October 2003 for total manufacturing was estimated at 78.9 percent. Seven (7) sectors posted more than 80% capacity utilization rate, as follows: machinery excluding electrical, miscellaneous manufactures, petroleum products, electrical machinery, paper and paper products, textile and rubber products (see Table 6).

The proportion of responding establishments that operated at full capacity (90%-100%) in October 2003 was 14.1 percent. About 52.4 percent of the responding establishments operated at 70%-89% capacity and 33.5 percent of the establishments operated below 70% capacity.

Distribution of Key Manufacturing Establishments
by Capacity Utilization
Total Manufacturing, October 2003
(In percent)

                                            Note: Details may not add up to 100 due to rounding.

·  Response Rate

The response rate for October 2003 is 84.7 percent, which corresponds to the retrieval of 471 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 2003
(1994 =100)

TABLE 1-A. VALUE OF PRODUCTION INDEX, September - October 2003 
(concluded)
(1994=100)

Note: * - new sectors in the 1994-based series

Sectors are ranked according to their contribution to the overall 1994-based October 2003 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 2003
(1994 = 100)

TABLE 1-B. VOLUME OF PRODUCTION INDEX, September  October 2003
(concluded)
(1994=100)

Note: * - new sectors in the 1994-based series

Sectors are ranked according to their contribution to the overall 1994-based October 2003 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 2003
(1994=100)

TABLE 2-A. VALUE OF NET SALES, September - October 2003 (concluded)
(1994=100)

Note: * - new sectors in the 1994-based series

Sectors are ranked according to their contribution to the overall 1994-based October 2003 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 2003
(1994=100)

TABLE 2-B. VOLUME OF NET SALES, September  October 2003 (concluded)
(1994=100)

Note: * - new sectors in the 1994-based series 
 
1/ - Less than 0.1 percent decrease.

Sectors are ranked according to their contribution to the overall 1994-based October 2003 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.

Source:   National Statistics Office
                 Manila, Philippines