r -revised

·  Value of Production Index (VaPI) continues to gain

The Value of Production Index (VaPI) for the manufacturing industry on a year-on-year basis grew by 14.0 percent in October 2004, compared with year ago figure, according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). Major sources of increase were observed in the following sectors: leather products, non-metallic mineral products, rubber products, wood and wood products, paper and paper products, publishing and printing, transport equipment, fabricated metal products, chemical products, footwear and wearing apparel, basic metals, furniture and fixtures and food manufacturing. Refer to Tables 1-A and 1.

Likewise, VaPI on a month-on-month basis slightly increased by 2.2 percent in October 2004. Sectors that significantly contributed to the increase were non-metallic mineral products, basic metals, leather products, machinery excluding electrical and tobacco. Refer to Tables 1-A and 1.

·  Volume of Production Index (VoPI) posts higher growth

Volume of Production Index (VoPI) continued to increase as it posted 9.0 percent growth in October 2004. Significant increment of 70.2 percent was brought about by leather products. Other sectors which also registered double-digit increases were non-metallic mineral products, electrical machinery, wood and wood products, publishing and printing, rubber products, furniture and fixtures, paper and paper products, transport equipment and beverage. Refer to Tables 2 and 1-B.

On a month-on-month basis, VoPI in October 2004 slowed down to 1.9 percent compared to previous month�s increase of 8.8 percent. Sectors that contributed to the increase were non-metallic mineral products, basic metals, leather products, machinery excluding electrical and tobacco. Refer to Tables 2 and 1-B.

·  Value of Net Sales continues to grow

Value of Net Sales in October increased by 13.6 percent compared to a year ago figure. Major contributors to the increase were the following: non-metallic mineral products, rubber products, wood and wood products, transport equipment, textile, petroleum products, beverage, electrical machinery, fabricated metal products, food manufacturing, chemical products, paper and paper products, basic metals and publishing and printing. Refer to Tables 2-A and 3.

Likewise, Value of Net Sales on a month-on-month basis posted an increase of 2.7 percent in October 2004. Sectors that contributed to the increase were non-metallic mineral products, leather products, machinery excluding electrical and miscellaneous manufactures. Refer to Tables 2-A and 3.

·  Volume of Net Sales picks up

Volume of Net Sales, on a year-on-year basis, rose to 2.7 percent in October 2004. Sectors that exhibited double-digit increase were the following: electrical machinery, non-metallic mineral products, rubber products, wood and wood products, beverage, transport equipment, furniture and fixtures and publishing and printing. Refer to Tables 2-B and 4.

On a monthly basis, Volume of Net Sales registered a slower rate increase of 2.2 percent in October 2004. Double-digit increases were registered by the following sectors: non-metallic mineral products, leather products, machinery excluding electrical and miscellaneous manufactures. Refer to Tables 2-B and 4.

·  Producer�s Price Index (PPI) still on the uptrend

The Producer�s Price Index (PPI) for total manufacturing on a year-on-year comparison posted an increase of 4.6 percent in October 2004. Sectors with double-digit increases were observed in the following: footwear and wearing apparel, petroleum products, basic metals, tobacco, food manufacturing, non-metallic mineral products, fabricated metal products and chemical products. Refer to Table 5..

Moreover, PPI on a month-on-month comparison moved up by 0.4 percent in October 2004. Sectors which contributed to the increase were the following: paper and paper products; fabricated metal products, wood and wood products and furniture and fixtures. Refer to Table 5.

·  Capacity Utilization

Average capacity utilization in October 2004 for total manufacturing was estimated at 80.1 percent. Sectors that posted more than 80% capacity utilization rates were the following: machinery excluding electrical, paper and paper products, electrical machinery, miscellaneous manufactures, petroleum products, basic metals, leather products, rubber products, chemical products and food manufacturing. Refer to Table 6..

The proportion of establishments that operated at full capacity (90%-100%) in October 2004 was 14.5 percent. More than half or 54.1 percent of the establishments operated at 70%-89% capacity and 31.4 percent of the establishments operated below 70% capacity.

Distribution of Key Manufacturing Establishments by Capacity Utilization
Total Manufacturing, October 2004
(In percent)

·  Response Rate

The response rate for October 2004 is 87.9 percent, which corresponds to the retrieval of 473 sample establishments� reports. Refer to Table 7.

Response Rates for Total Manufacturing
(In percent)

·  Technical Notes

Starting 2004, weights for the Producer�s Price Index (PPI) are based from the results of the 2000 Census of Philippine Business and Industry (CPBI) for establishments with average total employment (ATE) of 20 and over. Reference year for the 2000 CPBI is 1999. Refer to Press Release on Revision of 2004 PPI weights..

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.
 

TABLE 1-A. VALUE OF PRODUCTION INDEX, September - October 2004
(1994 =100)

TABLE 1-A. VALUE OF PRODUCTION INDEX, September - October 2004
(concluded)
(1994=100)

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

Sectors are ranked according to their contribution to the overall 1994-based October 2004 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 2004
(1994 = 100)

TABLE 1-B. VOLUME OF PRODUCTION INDEX, September - October 2004
(concluded)
(1994=100)

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

Sectors are ranked according to their contribution to the overall 1994-based October 2004 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 2004
(1994=100)

TABLE 2-A. VALUE OF NET SALES, September - October 2004 (concluded)
(1994=100)

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

Sectors are ranked according to their contribution to the overall 1994-based October 2004 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 2004
(1994=100)

TABLE 2-B. VOLUME OF NET SALES, September - October 2004 (concluded)
(1994=100)

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

Sectors are ranked according to their contribution to the overall 1994-based October 2004 growth rate.

Year-on-year growth ratesare 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