·  Value of Production Index (VaPI) grows at slower rate

Value of Production Index (VaPI) of the manufacturing industry registered a 3.1 percent growth in September 2003 compared with year-ago figure, according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). Basic metals led all industries with a substantial increase of 196.3 percent, followed by other sectors: machinery excluding electrical, textile, petroleum products, miscellaneous manufactures, wood and wood products and chemical products (see Table 1-A).

On the other hand, VaPI's month-on-month performance fell 1.2 percent in September 2003 due to the double-digit decreases reported by the following sectors: leather products, tobacco, electrical machinery, paper and paper products and rubber products (see Table 1-A).

·  Volume of Production Index (VoPI) slides down

On a year-on-year basis, Volume of Production Index (VoPI) dipped by 3.7 percent compared to the previous month's expansion of (revised) 4.7 percent. Sectors contributing to the decline were the following: leather products, tobacco, footwear and wearing apparel, electrical machinery, fabricated metal products, nonmetallic mineral products, beverage and food manufacturing (see Table 1-B).

Compared to the previous month, VoPI likewise dropped by 2.6 percent in September 2003. Significant decreases were observed in the following sectors:leather products, tobacco, electrical machinery, paper and paper productsand rubber products (see Annex 1-B).

·  Value of Net Sales continues to move up

Value of Net Sales exhibited a 6.7 percent year-on-year increase in September 2003. Major sources of increase were registered by the following sectors: basic metals, machinery excluding electrical, publishing and printing, electrical machinery, petroleum products, textile, chemical products, miscellaneous manufactures and nonmetallic mineral products (see Table 2-A).

Value of Net Sales on a monthly basis slightly weakened, shrinking by 1.0 percent from the (revised) 3.4 percent growth in August 2003. Double-digit decreases were depicted in the following sectors: leather products, tobacco, wood and wood products, footwear and wearing apparel and basic metals (see Table 2-A).

·  Net Sales Volume drops

Volume of Net Sales declined by 1.5 percent in September 2003 over the year-ago figure. Sectors that contributed to the decline were leather products, tobacco, footwear and wearing apparel, paper and paper products, food manufacturing, furniture and fixtures and beverage (see Table 2-B).

Similarly, Net Sales Volume in September 2003 fell 2.0 percent compared to the previous month due to the decline showed by the following sectors, namely:leather products, tobacco, wood and wood products, footwear and wearing apparel and basic metals.

·  Producer's Price Index (PPI) continues to increase

Producer's Price Index (PPI) for total manufacturing on a year-on-year basis posted an increment of 7.1 percent in September 2003. Footwear and wearing apparel led all sectors with an increase of 20.9 percent. Other sectors with double-digit increases were: chemical products, paper and paper products, petroleum products, electrical machinery and leather products (see Table 5).

On a monthly basis, PPI for total manufacturing went down by 2.2 percent in September 2003. Sectors that contributed to the decrease were: electrical machinery, nonmetallic mineral products, textile and miscellaneous manufactures (see Table 5).

·  Capacity Utilization

Average capacity utilization in September 2003 for total manufacturing was estimated at 77.5 percent. Sectors that posted more than 80% capacity utilization rate were the following: machinery excluding electrical, miscellaneous manufactures, petroleum products, paper and paper products, textile, basic metals and footwear and wearing apparel (see Table 6).

The proportion of responding establishments that operated at full capacity (90%-100%) in September 2003 was 17.2 percent. About 46.8 percent of the responding establishments operated at 70%-89% capacity and 36.0 percent of the establishments operated below 70% capacity.

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

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

·  Response Rate

The response rate for September 2003 is 90.3 percent, which corresponds to the retrieval of 502 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, August  September 2003
(1994 =100)

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

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

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

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

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

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

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

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

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

TABLE 2-B. VOLUME OF NET SALES, August - September 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 September 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