r - revised

·  Value of Production still down at a slower pace

Value of Production Index (VaPI) of the manufacturing industry continued to decelerate at a slower rate of 11.2 percent in October 2009, according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). This was due to the significant decreases in value of production reported by the following major sectors: leather products, furniture and fixtures, beverages, petroleum products, paper and paper products, footwear and wearing apparel, fabricated metal products, electrical machinery, machinery except electrical and textiles. Refer to Tables 1-A and 1.

On a month-on-month basis, VaPI on the other hand recorded an increase of 5.2 percent in October 2009. This was brought about by the high growth in tobacco products, which surged by 35.5 percent after posting a fall of 15.5 percent during the previous month. Other major sectors that posted two-digit increases were wood and wood products and food manufacturing.Refer to Tables 1-A and 1.

·  Volume of Production posts slower contraction

On an annual comparison, Volume of Production Index (VoPI) slumped by merely 6.4 percent in October 2009, after registering two-digit declines in the last 10 months. Thirteen (13) major sectors experienced a drop in factory output and with two-digit decreases in the following:leather products, beverages, footwear and wearing apparel, petroleum products, textiles, paper and paper products, fabricated metal products, and wood and wood products. Refer to Tables 1-B and 2.

On a monthly comparison, however, VoPI grew by 6.9 percent in October 2009. Two-digit increments were registered by tobacco products, wood and wood products, basic metalsand food manufacturing. Refer to Tables 1-B and 2.

·  Value of Net Sales decelerates

In October 2009, Value of Net Sales Index (VaNSI) reflected a slower decline of 6.9 percent from a two-digit drop since December 2008. Among the 11 major sectors that reported shortfall in sales, the following significantly contributed to the decline: furniture and fixtures, petroleum products, leather products, textiles, beverages, paper and paper products, fabricated metal products, footwear and wearing apparel, and machinery except electrical. Refer to Tables 2-A and 3.

On a month-on-month change, VaNSI continued to grow as it posted an increase of 3.5 percent in October 2009. This was primarily due to the expansion in sales value observed in 14 major sectors led by wood and wood products, with an increase of 20.2 percent. Refer to Tables 2-A and 3.

·  Volume of Net Sales likewise declines at a slower rate

Volume of Net Sales Index (VoNSI) likewise recorded a year-on-year drop of 1.8 percent in October 2009. Seven (7) of the 10 major sectors strongly influenced the decrease in sales volume, namely: textiles, leather products, petroleum products, beverages, footwear and wearing apparel, furniture and fixtures, and chemical products. Refer to Tables 2-B and 4.

On a monthly basis, VoNSI went up by 5.1 percent in October 2009. Seventeen (17) major sectors reported increases led by wood and wood products and basic metals, which exhibited two-digit growths of 20.2 percent and 10.6 percent, respectively. Refer to Tables 2-B and 4.

·  Capacity Utilization

Average capacity utilization in October 2009 for total manufacturing stood at 82.3 percent. Eleven (11) major sectors registered capacity utilization rates of 80% and more, namely: basic metals, food manufacturing, electrical machinery, machinery except electrical, leather products, miscellaneous manufactures, chemical products, paper and paper products, non-metallic mineral products, rubber and plastic products and petroleum products.Refer to Table 6.

The proportion of establishments that operated at full capacity (90% to 100%) was 11.9 percent in October 2009. About 63.9 percent of the establishments operated at 70% to 89% capacity while 24.2 percent of the establishments operated below 70% capacity.

·  Response Rates

The response rates for the October 2009 MISSI and PPS are 86.8 percent and 95.6 percent, respectively. Refer to Tables 7 and 8

                                                                                                                                                                              r-revised

·  Technical Notes

Only the 2000 based series will be continued beginning the July 2008 issue.

Starting with the February 2008 issue, a revised industry disaggregation of the MISSI indices and PPI will be adopted to conform with the amended 1994 PSIC groupings. Rubber and Plastic Products is a new major sector, consisting of two subsectors, namely: Rubber Productsand Plastic Products. Rubber Products was previously a major sector while Plastic Productswas one of the sub-sectors of Chemical Products.

With previously seven (7) subsectors, the major sector of Chemical Products has now six (6) subsectors, namely: Basic Chemicals and Industrial Gases, Fertilizers, Paints, Drugs and Medicines, Cosmetics and Toilet Preparations, and Miscellaneous Chemicals.

The major sector of Machinery except Electrical has been split into two subsectors, namely:Machinery and Equipment, n.e.c. and Office, Accounting and Computing Machinery.

The corresponding weights of the above major sectors and sub-sectors have been recomputed to allow for the revised computation of the indices.

Beginning the February 2008 issue, the VaPI, VoPI, VaNSI, VoNSI and the revised PPI for Total Manufacturing for all months of 2008 are computed based on the revised industry disaggregation.

Also, beginning with the January 2009 data, weights of the major sectors and sub-sectors for the PPI and Capacity Utilization Rate have been computed utilizing the results of the 2006 Census of Philippine Business and Industry for Manufacturing Establishments for 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. 

Notes:

* - new sector in the 2000-based series

Sectors are ranked according to their contribution to the overall 2000-based October 2009 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.

Notes

* - new sector in the 2000-based series

Sectors are ranked according to their contribution to the overall 2000-based October 2009 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.

Note:

* - new sector in the 2000-based series

Sectors are ranked according to their contribution to the overall 2000-based October 2009 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.

Note:

*  -   new sector in the 2000-based series

Sectors are ranked according to their contribution to the overall 2000-based October 2009 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