PRODUCTION

Value of Production continued to decrease

The Value of Production Index (VaPI) for manufacturing sector reflected an annual decrement of -21.1 percent in January 2021, from its previous month’s annual drop of -15.4 percent. In January 2020, VaPI decreased by -1.7 percent.  (Table A)

Contributory to the faster decline of VaPI for manufacturing sector in January 2021 were the reductions in the indices of 18 out of the 22 industry divisions. The industry divisions that led the contraction of VaPI were manufacture of wood, bamboo, cane, rattan articles and related products (-53.5%), manufacture of coke and refined petroleum products (-53.1%), and manufacture of machinery and equipment except electrical (-51.0%).  (Tables 1-A and 1)

Volume of Production Index likewise dropped

The Volume of Production Index (VoPI), likewise, continued to drop at an annual rate of -16.7 percent in January 2021. This decline was faster than the -12.0 percent decrease registered in the previous month. In January 2020, the annual increase of VoPI was recorded at 1.9 percent.  (Table A)

The faster downturn in VoPI was brought about by the annual decreases of 18 industry divisions led by manufacture of wood, bamboo, cane, rattan articles and related products (-53.4%), manufacture of machinery and equipment except electrical (-48.9%), and manufacture of tobacco (-42.6 %).  (Tables 1-B and 2)

NET SALES

Value of Net Sales Index declined further

The Value of Net Sales Index (VaNSI) for manufacturing posted a downturn with an annual rate of -13.9 percent in January 2021. This contraction was faster than the reported decrease in the previous month of -6.5 percent. In January 2020, an annual increase of 8.3 percent was observed.  (Table A)

Of the 22 industry divisions, negative growth rates were observed in 18 industry divisions. The top three were manufacture of machinery and equipment except electrical (-41.0%), manufacture of tobacco (-38.0%), and manufacture of other non-metallic mineral products (-36.3%).  (Tables 2-A and 3)

Volume of Net Sales Index likewise dropped

The Volume of Net Sales Index (VoNSI) in January 2021, likewise, contracted at a faster rate of -9.1 percent compared with its -2.8 percent decrease in December 2020. In January 2020, VaNSI grew by 12.3 percent.  (Table A)

The decline of VaNSI in January 2021 was due to the decreases in the indices of 17 industry divisions. Among these, the top three industry divisions were manufacture of tobacco (-40.1%), manufacture of machinery and equipment except electrical (-38.5%), and manufacture of other non-metallic mineral products (-35.1%).  (Tables 2-B and 4)

CAPACITY UTILIZATION

Average capacity utilization rate for manufacturing slightly decreased

Based on responding establishments, the average capacity utilization rate for the manufacturing sector in January 2021 was posted at 46.1 percent from 49.1 percent in the previous month.

Seven (7) of the 22 industry divisions had at least 50 percent average capacity utilization rate, namely, manufacture of basic pharmaceutical products and pharmaceutical preparations (67.5%), manufacture of wood, bamboo, cane, rattan articles, and related products (56.6%), printing and reproduction of recorded media (56.1%), manufacture of paper and paper products, (55.0%), manufacture of computer, electronic, and optical products (52.0%), manufacture of rubber and plastic products (51.6%), and manufacture of furniture (50.0%).  (Table 6)

More than one-fifth of responding establishments operated at full capacity

The proportion of establishments that operated at full capacity (90% to 100%) was 20.9 percent of the total number of responding establishments. Meanwhile, 40.5 percent operated at 70 to 89 percent capacity, while more than one-third (38.6%) operated below 70 percent capacity.  (Table B)

DENNIS S. MAPA, Ph. D.
Undersecretary
National Statistician and Civil Registrar General

TABLE 1-B.   Year-on-Year Growth Rate (%) of Volume of Production Index
by Industry Division: January 2021^p and December 2020^r
(2018 = 100)

 

TABLE 2-A.   Year-on-Year Growth Rate (%) of Value of Net Sales Index
by Industry Division: January 2021^p and December 2020^r
(2018 = 100)

 

TABLE 2-B.   Year-on-Year Growth Rate (%) of Volume of Net Sales Index
by Industry Division: January 2021^p and December 2020^r
(2018 = 100)