Table A   Year-on-Year Growth Rates for Production Index, Net Sales Index and Producer Price Index:

October and September 2012

                                                   r - revised

•   Value of Production Index registers two-digit growth in October 2012

Value of Production Index (VaPI) of the manufacturing industry climbed to 18.9 percent in October 2012 compared with the year-ago figure, according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). Significant expansion in value of production was exhibited by footwear and wearing apparel with a three-digit increase of 120.7 percent, followed by other four major sectors that posted two-digit increments, namely: electrical machinery (56.6%), basic metals (26.3%), food manufacturing (25.4%) and transport equipment (14.7%). Refer to Tables 1-A and 1.

On a month-on-month change, VaPI recorded an increase of 3.7 percent in October 2012. Twelve major sectors accounted for the significant growth in production led by footwear and wearing apparel (28.1%), tobacco products (10.4%) and food manufacturing (10.4%).  Refer to Tables 1-A and 1.

•   Volume of Production likewise steps up in October 2012

On a yearly comparison, the Volume of Production Index (VoPI) posted a two-digit annual increment of 22.2 percent in October 2012. High production outputs were reported by seven (7) out of 13 major sectors led by footwear and wearing apparel, registering a three-digit increase of 128.9 percent. Other major sectors with two-digit increases were observed in the following: electrical machinery (75.2%), basic metals (33.8%), food manufacturing (19.4%), wood and wood products (15.5%), transport equipment (13.5%) and machinery except electrical (12.3%). Refer to Tables 1-B and 2.

VoPI, on a month-on-month basis grew by 4.7 percent in October 2012. The major sectors that showed two-digit increases in production volume were footwear and wearing apparel (27.1%), petroleum products (11.2%), food manufacturing (11.2%) and tobacco products (10.2%). Refer to Tables 1-B and 2.

•   Value of Net Sales accelerates further in October 2012

Value of Net Sales Index (VaNSI) accelerated as it posted an annual growth of 7.1 percent in October 2012. This was due to the increase in sales value of the eleven major sectors led by footwear and wearing apparel, with a three-digit growth of 126.9 percent. This was followed by other five major sectors that posted two-digit increases, namely: beverages (56.8%), non-metallic mineral products (50.9%), electrical machinery (34.0%), publishing and printing (30.6%) and food manufacturing (11.1%). Refer to Tables 2-A and 3.

On a monthly comparison, VaNSI continued to grow at 7.6 percent in October 2012. Eleven major sectors contributed to the increase in sales output with significant expansion noted in the following: beverages (42.1%), electrical machinery (39.3%), footwear and wearing apparel (19.6%), wood and wood products (16.7%) and non-metallic mineral products (10.4%).  Refer to Tables 2-A and 3.

•   Volume of Net Sales registers two-digit growth

Volume of Net Sales Index (VoNSI) continued to gain at a faster rate of 10.1 percent in October 2012, compared with the previous month’s growth of 4.1 percent. Footwear and wearing apparel contributed significantly to the increase with 135.3 percent growth, followed by major sectors that registered two-digit growth in net sales volume, namely: beverages (56.7%), non-metallic mineral products (51.6%), electrical machinery (49.9%), publishing and printing (23.1%), wood and wood products (18.1%) and machinery except electrical (15.2%). Refer to Tables 2-B and 4.

On a month-on-month basis, VoNSI also went up by 8.6 percent in October 2012. Sectors that influenced the increase were the following: beverages (42.1%), electrical machinery (40.9%), footwear and wearing apparel (18.8%), wood and wood products (16.7%) and non-metallic mineral products (12.0%). Refer  to  Tables 2-B and 4.

•   Capacity Utilization in October 2012 is 83.4 percent

Average capacity utilization in October 2012 for total manufacturing stood at 83.4 percent. Eleven of the 20 major sectors registered capacity utilization rates of 80 percent or more, namely:

• petroleum products (87.9%)
• basic metals (87.6%)
• food manufacturing (86.7%)
• electrical machinery (85.3%)
• machinery except electrical (84.3%)
• non-metallic mineral products (83.5%)
• rubber and plastic products (82.7%)
• chemical products (82.0%)
• paper and paper products (81.8%)
• miscellaneous manufactures (81.3%)
• wood and wood products (80.4%).

The proportion of establishments that operated at full capacity (90% to 100%) was 19.9 percent in October 2012.  About 56.2 percent of the establishments operated at 70% to 89% capacity while 23.9 percent of the establishments operated below 70% capacity. Refer to Table 6.

TECHNICAL NOTES

•   Introduction

The Monthly Integrated Survey of Selected Industries (MISSI) is one of the designated statistical activities undertaken by the National Statistics Office with the objective of providing flash indicators on the performance of growth-oriented industries in the manufacturing sector. The survey gathers monthly data on employment, compensation, production, net sales, inventories and capacity utilization.

Beginning with the January 2012 MISSI, the monthly report for the survey was released earlier, that is, 45 days after each reference month instead of the 55 days.

The indicators generated from the 2012 MISSI are Value of Production Index (VaPI), Volume of Production Index (VoPI), Value of Net Sales (VaNSI), and Volume of Net Sales (VoNSI). However, the VoPI and VoNSI are derived indicators utilizing the 2012 Producer Price Index as deflator.

•   Method of Index Computation

The MISSI utilizes the Laspeyres-type method of index computation where the weights are computed from the value of production of the Census of Philippine Business and Industry (CPBI).

For the 2012 MISSI index series with base year of 2000, the weights of the major sectors and sub-sectors were computed from the results of the 2000 CPBI for manufacturing establishments with average total employment of 20 and over. The weights are computed from the value of products sold plus change in inventories.

The formulas in the computation are as follows:

Value of Production Index (VaPI)

•   Industry Coverage

The industry coverage of the 2012 MISSI conforms with the amended 1994 PSIC groupings. There are 20 major sectors, as shown below, with 10 further disaggregated into sub-sectors.

•   Response Rate

The response rates for the October 2012 MISSI and PPS are 82.6 percent and 92.7 percent, respectively.  Refer to Tables 7 and 8.

                            r-revised

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 – October 2012

   (2000 =100)

  TABLE 1-A  Value of Production Index, September – October 2012

(2000 = 100) (concluded)

TABLE 1-B  Volume of Production Index, September – October 2012

(2000 = 100)

TABLE 1-B  Volume of Production Index, September – October 2012

(2000 = 100) (concluded)

TABLE 2-A  Value of Net Sales Index, September – October 2012

(2000 =100)

TABLE 2-A  Value of Net Sales Index, September – October 2012

(2000 = 100) (concluded)

TABLE 2-B  Volume of Net Sales Index, September – October 2012

(2000 = 100)

TABLE 2-B  Volume of Net Sales Index, September – October 2012

(2000 = 100) (concluded)