r-revised

• Value of Production continues to drop

  Value of Production Index (VaPI) for the manufacturing industry dipped further by 11.2 percent in October 2006 compared with the year-ago figure, according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). The drop was due to the continued two-digit decreases in production reported by machinery excluding electrical, petroleum products, textiles and tobacco. Refer to Tables 1-A and 1.

  On a monthly basis, VaPI went down by 2.5 percent from its previous month's (revised) decrease of 3.9 percent. Sectors that made significant contributions to the decline were electrical machinery and petroleum products. Refer to Tables 1-A and 1

• Volume of Production Index (VoPI) declines further

  Volume of Production Index (VoPI) continued to decline as it posted a decrease of 19.2 percent in October 2006. This was largely due to the declining factory output in ten (10) of the 20 major sectors, with two-digit decreases observed in the following: machinery excluding electrical, electrical machinery, textiles, petroleum products, tobacco, non-metallic mineral products, food manufacturing, footwear and wearing apparel, transport equipment and rubber. Refer to Tables 2 and 1-B.

  Likewise, VoPI on a monthly comparison also dipped by 2.3 percent from a negative growth (revised) of 3.9 percent in September 2006. Electrical machinery pulled down over-all manufacturing production as it posted a decrease of 12.2 percent. Refer to Tables 2 and 1-B.

  

• 

   

• Value of Net Sales maintains single-digit positive growth

  Value of Net Sales in October 2006 continued to post a single-digit growth of 1.8 percent compared to its year-ago figure. The two-digit increases in growth of basic metals, tobacco and wood and wood products sustained the positive sales performance of the manufacturing industry. Refer to Tables 2-A and 3.

  Value of Net Sales on a monthly basis, likewise, increased by 2.8 percent in October 2006. Increases were observed in eleven (11) major sectors led by basic metals and food manufacturing with growth of 13.2 percent and 10.1 percent, respectively. Refer to Tables 2-A and 3.

• Volume of Net Sales maintains negative growth

  For nine consecutive months, the Volume of Net Sales could not recover from its downtrend as it posted a year-on-year decrease of 6.0 percent in October 2006. Machinery excluding electrical continued to lead the major sectors as it exhibited the highest decline of 79.8 percent. Six other major sectors that significantly influenced the reduction in sales volume are the following: electrical machinery, footwear and wearing apparel, leather products, transport equipment, textiles and rubber products. Refer to Tables 2-B and 4.

  However, Volume of Net Sales on a month-on-month basis posted an improvement of 3.2 percent in October 2006. This was due to the significant expansion in sales volume reported by basic metals.

• Refer to Tables 2-B and 4.

• Capacity Utilization

  Average capacity utilization in October 2006 for total manufacturing was estimated at 80.1 percent. Sectors that registered more than 80% capacity utilization rates were the following: machinery excluding electrical, electrical machinery, paper and paper products, petroleum products, miscellaneous manufactures, leather products, basic metals, rubber products, food manufacturing and chemical products. Refer to Table 6. .

  The proportion of establishments that operated at full capacity (90% to 100%) was 10.7 percent in October 2006. More than half or 57.8 percent of the establishments operated at 70% to 89% capacity and 31.5 percent of the establishments operated below 70% capacity.

  Distribution of Key Manufacturing Establishments by Capacity Utilization
  Total Manufacturing, October 2006
  (In percent)

  Capacity Utilization	Percent Share
  Below 50 percent	3.5
  50 percent - 59 percent	9.4
  60 percent - 69 percent	18.6
  70 percent - 79 percent	21.1
  80 percent - 89 percent	36.7
  90 percent - 100 percent	10.7

• Response Rate

  The response rates for the October 2006 MISSI and PPS are 88.8 percent and 94.9 percent, respectively. Refer to Tables 7 and 8.

  Response Rates for Total Manufacturing
  (In percent)

  	October 2006	September 2006            (revised)
  MISSI	88.8	94.9r
  PPS	96.6r	98.5r

  
                         r-revised
• Technical Notes

  Starting 2006, weights for the Producer Price Index (PPI) are based from the results of the 2003 Annual Survey of Philippine Business and Industry (ASPBI) for manufacturing establishments with average total employment (ATE) of 20 and over.

  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, September 2006 - October 2006
  (1994 =100)

  Gainers	Year-on-Year Growth (percent)
  	October 2006	September 2006 (revised)
  Basic Metals	38.4	46.8
  Wood and Wood Products	43.2	-16.2
  Paper and Paper Products	16.2	7.7
  Footwear and Wearing Apparel*	6.2	-6.8
  Fabricated Metal Products*	11.9	13.9
  Electrical Machinery	0.9	27.2
  Furniture and Fixtures	13.6	-6.5
  Beverages	1.1	15.4
  Leather Products*	24.6	-31.4
  Publishing and Printing*	2.2	-21.9
  Miscellaneous Manufactures	1.6	16.8
  Rubber Products	1.4	-10.7
  Losers	Year-on-Year Growth (percent)
  	October 2006	September 2006 (revised)
  Petroleum Products	-36.3	-16.3
  Food Manufacturing	-9.7	20.8
  Textiles	-30.5	-25.5
  Chemical Products	-6.9	-25.0
  Machinery Excluding Electrical*	-51.0	-46.4
  Transport Equipment	-9.3	-1.0
  Tobacco	-16.7	-17.4
  Non-Metallic Mineral Products	-6.6	6.4

  TABLE 1-A. VALUE OF PRODUCTION INDEX, September 2006 - October 2006
  (concluded)
  (1994=100)

  Gainers	Month-on-Month Growth (percent)
  	October 2006	September 2006 (revised)
  Chemical Products	13.9	-27.1
  Food Manufacturing	4.8	1.2
  Footwear and Wearing Apparel*	8.7	-2.6
  Non-Metallic Mineral Products	2.9	1.7
  Paper and Paper Products	4.7	3.9
  Publishing and Printing*	7.3	-8.9
  Machinery Excluding Electrical*	5.0	-10.3
  Rubber Products	9.4	-15.6
  Furniture and Fixtures	6.1	-1.0
  Tobacco	1.1	-2.6
  Leather Products*	11.8	-30.5
  Losers	Month-on-Month Growth (percent)
  	October 2006	September 2006 (revised)
  Electrical Machinery	-12.6	19.7
  Petroleum Products	-11.3	-12.4
  Basic Metals	-7.5	4.3
  Transport Equipment	-5.9	-1.2
  Beverages	-6.1	10.7
  Miscellaneous Manufactures	-8.3	0.1
  Fabricated Metal Products*	-1.1	-1.2
  Textiles	-0.5	-5.8
  Wood and Wood Products	b/	-11.4

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

  b/ - Less than 0.1 percent decrease

  Sectors are ranked according to their contribution to the overall 1994-based October 2006 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 2006 - October 2006
  (1994 = 100)

  Gainers	Year-on-Year Growth (percent)
  	October 2006	September 2006 (revised)
  Basic Metals	37.0	44.3
  Wood and Wood Products	33.0	-21.6
  Paper and Paper Products	11.7	3.7
  Furniture and Fixtures	26.8	7.8
  Publishing and Printing*	13.0	-13.8
  Miscellaneous Manufactures	5.5	21.4
  Fabricated Metal Products*	3.1	6.6
  Losers	Year-on-Year Growth (percent)
  	October 2006	September 2006 (revised)
  Electrical Machinery	-38.2	-15.5
  Petroleum Products	-32.6	-18.4
  Food Manufacturing	-15.6	13.9
  Textiles	-33.7	-29.4
  Chemical Products	-7.4	-25.3
  Machinery Excluding Electrical*	-58.0	-54.4
  Tobacco	-21.3	-21.9
  Transport Equipment	-11.2	-7.9
  Footwear and Wearing Apparel*	-14.8	-25.7
  Non-Metallic Mineral Products	-15.7	-2.2
  Beverages	-1.4	12.9
  Rubber Products	-10.8	-22.0
  Leather Products*	-0.4	-45.2

  TABLE 1-B. VOLUME OF PRODUCTION INDEX, September 2006 - October 2006
  (concluded)
  (1994=100)

  Gainers	Month-on-Month Growth (percent)
  	October 2006	September 2006 (revised)
  Chemical Products	13.8	-27.2
  Food Manufacturing	4.3	0.9
  Footwear and Wearing Apparel*	9.2	-3.6
  Paper and Paper Products	5.1	3.8
  Publishing and Printing*	7.5	-8.9
  Machinery Excluding Electrical*	5.2	-10.5
  Rubber Products	10.0	-15.6
  Furniture and Fixtures	6.8	0.4
  Tobacco	1.1	-2.6
  Non-Metallic Mineral Products	0.9	1.9
  Leather Products*	11.8	-30.4
  Losers	Month-on-Month Growth (percent)
  	October 2006	September 2006 (revised)
  Electrical Machinery	-12.2	20.0
  Petroleum Products	-7.4	-7.9
  Basic Metals	-7.4	3.1
  Beverages	-6.1	10.7
  Transport Equipments	-5.5	-1.2
  Miscellaneous Manufactures	-8.0	0.2
  Fabricated Metal Products*	-2.7	-3.8
  Textiles	-0.5	-7.4
  Wood and Wood Products	-0.6	-11.0

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

  Sectors are ranked according to their contribution to the overall 1994-based October 2006 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 2006 - October 2006
  (1994=100)

  Gainers	Year-on-Year Growth (percent)
  	October 2006	September 2006 (revised)
  Basic Metals	50.2	22.6
  Food Manufacturing	8.9	10.5
  Tobacco	15.3	-9.0
  Electrical Machinery	3.5	5.1
  Chemical Products	3.4	-4.4
  Wood and Wood Products	14.7	-3.1
  Beverages	2.5	21.2
  Non-Metallic Mineral Products	1.3	4.3
  Miscellaneous Manufactures	3.8	10.5
  Fabricated Metal Products*	1.4	11.9
  Rubber Products	1.5	10.5
  Losers	Year-on-Year Growth (percent)
  	October 2006	September 2006 (revised)
  Petroleum Products	-14.7	1.0
  Machinery Excluding Electrical*	-76.4	-76.2
  Transport Equipment	-15.8	-6.6
  Footwear and Wearing Apparel*	-7.6	-14.8
  Textiles	-10.4	-10.3
  Furniture and Fixtures	-18.8	-25.4
  Paper and Paper Products	-2.0	-2.0
  Publishing and Printing*	-1.6	-8.1
  Leather Products*	-2.1	-34.0

  TABLE 2-A. VALUE OF NET SALES, September 2006 - October 2006(concluded)
  (1994=100)

  Gainers	Month-on-Month Growth (percent)
  	October 2006	September 2006 (revised)
  Food Manufacturing	10.1	2.5
  Chemical Products	9.8	3.9
  Basic Metals	13.2	-1.9
  Footwear and Wearing Apparel*	7.5	-12.5
  Non-Metallic Mineral Products	4.9	2.5
  Publishing and Printing*	8.8	-12.0
  Tobacco	2.3	5.0
  Furniture and Fixtures	6.8	5.5
  Paper and Paper Products	1.8	-1.3
  Leather Products*	9.9	-30.7
  Textiles	0.2	0.8
  Losers	Month-on-Month Growth (percent)
  	October 2006	September 2006 (revised)
  Petroleum Products	-8.4	0.2
  Beverages	-5.3	14.4
  Transport Equipment	-3.9	3.3
  Fabricated Metal Products*	-7.2	-4.9
  Wood and Wood Products	-11.2	5.0
  Miscellaneous Manufactures	-8.5	3.2
  Machinery Excluding Electrical*	-1.0	-16.0
  Rubber Products	-1.1	-5.3
  Electrical Machinery	b/	4.1

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

  b/ - Less than 0.1 percent decrease

  Sectors are ranked according to their contribution to the overall 1994-based October 2006 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 2006 - October 2006
  (1994=100)

  Gainers	Year-on-Year Growth (percent)
  	October 2006	September 2006 (revised)
  Basic Metals	48.6	20.6
  Food Manufacturing	1.7	4.2
  Chemical Products	2.8	-4.7
  Tobacco	8.9	-14.0
  Publishing and Printing*	8.5	1.4
  Miscellaneous Manufactures	7.8	14.8
  Wood and Wood Products	6.5	-9.3
  Losers	Year-on-Year Growth (percent)
  	October 2006	September 2006 (revised)
  Electrical Machinery	-36.6	-30.1
  Petroleum Products	-9.7	-1.5
  Footwear and Wearing Apparel*	-25.9	-32.0
  Machinery Excluding Electrical*	-79.8	-79.8
  Transport Equipment	-17.6	-13.0
  Textiles	-14.5	-14.9
  Non-Metallic Mineral Products	-8.6	-4.1
  Fabricated Metal Products*	-6.5	4.7
  Paper and Paper Products	-5.8	-5.7
  Rubber Products	-10.7	-5.2
  Furniture and Fixtures	-9.3	-14.0
  Leather Products*	-21.8	-47.3
  Beverages	-0.1	18.5

  TABLE 2-B. VOLUME OF NET SALES, September 2006 - October 2006 (concluded)
  (1994=100)

  Gainers	Month-on-Month Growth (percent)
  	October 2006	September 2006 (revised)
  Food Manufacturing	9.5	2.2
  Chemical Products	9.6	3.9
  Basic Metals	13.3	-3.1
  Footwear and Wearing Apparel*	8.0	-13.3
  Publishing and Printing*	8.8	-12.0
  Non-Metallic Mineral Products	2.9	2.7
  Tobacco	2.3	5.0
  Electrical Machinery	0.5	4.4
  Furniture and Fixtures	7.4	7.0
  Paper and Paper Products	2.3	-1.4
  Leather Products*	9.9	-30.7
  Textiles	0.2	-0.9
  Losers	Month-on-Month Growth (percent)
  	October 2006	September 2006 (revised)
  Petroleum Products	-4.3	5.3
  Beverages	-5.3	14.4
  Transport Equipment	-3.5	3.3
  Fabricated Metal Products*	-8.6	-7.5
  Wood and Wood Products	-11.7	5.6
  Miscellaneous Manufactures	-8.2	3.4
  Machinery Excluding Electrical*	-0.9	-16.2
  Rubber Products	-0.6	-5.3

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

  Sectors are ranked according to their contribution to the overall 1994-based October 2006 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.

   

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  Source:   National Statistics Office
                   Manila, Philippines