A. Year-on-year Growth for January 2023

1. Value of Production Index

The Value of Production Index (VaPI) for manufacturing posted a double-digit year-on-year increment of 15.4 percent in January 2023, faster than the December 2022 annual growth of 9.5 percent. In January 2022, the VaPI registered a slightly slower annual growth rate of 15.1 percent. (Figure 2, Tables A and 1)

The expansion in the annual growth of the VaPI in January 2023 was mainly attributed by the higher annual increase in the index of manufacture of food products industry division with 25.1 percent annual increment in January 2023 from 11.2 percent in the previous month. The manufacture of food products contributed 29.0 percent to the upward trend of the VaPI of the manufacturing sector in January 2023. Out of the 22 industry divisions for the manufacturing sector, manufacture of food products had the highest weight  in the computation of VaPI.

Other main contributors to the higher annual growth rate of VaPI in January 2023 were manufacture of transport equipment with 24.1 percent annual increase during the period from 4.0 percent in the previous month, and manufacture of electrical equipment with an annual rate of 55.3 percent in January 2023 from an annual decline of -54.5 percent in the previous month. In addition to these, uptrends were observed in the annual growth rates of the indices of three industry divisions: manufacture of beverages; manufacture of other non-metallic mineral products; and other manufacturing and repair and installation of machinery and equipment.

Furthermore, the indices of six industry divisions recorded positive year-on-year growth rates in January 2023 after posting annual decreases in December 2022.

In contrast, slowdowns were noted in the annual growth rates of the indices of six industry divisions during the period. The manufacture of fabricated metal products, except machinery and equipment registered the slowest annual growth rate of 3.3 percent in January 2023 from 55.8 percent in December 2022.

Meanwhile, the remaining four industry divisions recorded negative annual rates in January 2023 from positive growths in the previous month. The manufacture of furniture industry division recorded the fastest annual drop of -16.9 percent during the period from 1.7 percent in December 2023.  (Tables C and 1)

In January 2023, the VaPI for manufacture of food products registered an annual increment of 25.1 percent. This was higher compared with the December 2022 annual growth rate of 11.2 percent and with the January 2022 annual increase of 12.2 percent. (Figure 3, and Tables 1 and 1a)

The increase in the annual growth of the VaPI for manufacture of food products in January 2023 was primarily attributed by the higher annual increase in the index of manufacture of dairy products industry group with 45.1 percent annual increment in January 2023 from 12.4 percent in the previous month. Other primary contributors to the higher year-on-year growth of VaPI for manufacture of food products were manufacture of prepared animal feeds with an annual upturn of 4.4 percent during the month from an annual decline of -21.8 percent in December 2022, and processing and preserving of meat with 22.8 percent annual increase in January 2023 from 11.0 percent in the previous month. (Tables 1 and 1a)

2. Volume of Production Index

The Volume of Production Index (VoPI) for manufacturing recorded a double-digit year-on-year increase of 10.6 percent in January 2023, faster than the annual growth rate of 4.2 percent in the previous month. In January 2022, VoPI recorded a faster annual increment of 10.9 percent. (Figure 3, Tables A and 2)

The upturn of VoPI in January 2023 than its annual growth in December 2022 was mainly brought about by the annual increases in the indices of the same top three industry divisions that contributed to the growth of VaPI in January 2023. These were the following:

a) Manufacture of food products, 17.3 percent from 3.3 percent in the past month;
b) Manufacture of transport equipment, 24.3 percent from -0.2 percent in the previous month; and
c) Manufacture of electrical equipment, 53.6 percent from -54.8 percent in December 2022.

In addition to these three, three industry divisions exhibited higher year-on-year increments in their indices during the month, while six industry divisions recorded annual increments during the month from annual declines in December 2022.

Meanwhile, slowdowns were observed in the annual growth rates of the indices of five industry divisions. The manufacture of paper and paper products posted the slowest annual growth rate of 0.8 percent from 4.1 percent annual rate in December 2022.

Furthermore, the VoPI of four industry divisions registered negative annual rates during the period after posting positive growth rates in the previous month. The manufacture of fabricated metal products, except machinery and equipment recorded the fastest annual drop of -3.0 percent in January 2023 from the 50.6 percent annual increase in the previous month.

Lastly, the index of manufacture of furniture declined further in January 2023, recording an annual decrease of -18.9 percent from -0.1 percent in the previous month. (Tables D and 2)

The VoPI for manufacture of food products registered an annual increment of 17.3 percent in January 2023. This was higher compared with the December 2022 annual growth rate of 3.3 percent and with the January 2022 annual increase of 6.1 percent. (Figure 3, and Tables 2 and 2a)

The increase in the annual growth of the VoPI for manufacture of food products in January 2023 was predominantly contributed by the higher annual upturns in the index of manufacture of dairy products industry group with 35.2 percent annual increment in January 2023 from 5.3 percent in the previous month. Other primary contributors to the higher year-on-year growth of VoPI for manufacture of food products were processing and preserving of meat with 16.3 percent annual increase during the month from 5.0 percent in December 2022, and processing and preserving of fish, crustaceans and mollusks with 4.8 percent annual upturn in January 2023 from 0.1 percent in the previous month. (Tables 2 and 2a)

3. Value of Net Sales Index

The Value of Net Sales Index (VaNSI) for manufacturing continued to increase at an annual rate of 19.9 percent in January 2023, compared with the annual growth of 16.4 percent in the previous month. In January 2022, VaNSI recorded a slower annual increase of 16.9 percent. (Figure 4, Tables A and 3)

The year-on-year increment of VaNSI in January 2023 was mainly contributed by the annual upturn in the index of manufacture of basic metals industry division with 31.7 percent annual increase from a negative growth of -24.5 percent in December 2022. The manufacture of basic metals contributed 28.1 percent to the upward trend of the annual growth of VaNSI of the manufacturing sector in January 2023.

Other main contributors to the higher annual growth rate of VaNSI in January 2023 were manufacture of food products with 22.2 percent annual growth rate during the period from 13.1 percent in the previous month; and manufacture of fabricated metal products, except machinery and equipment with an annual growth of 37.5 percent in January 2023 from an annual drop of -30.1 percent in the previous month. In addition to these, positive year-on-year upturns during the month were recorded in four industry divisions after posting annual decreases in December 2022.

Furthermore, other manufacturing and repair and installation of machinery and equipment; and manufacture of other non-metallic mineral products posted higher annual growth rates in January 2023 with 22.3 percent and 15.6 percent, respectively.

On the contrary, there were six industry divisions that registered slower annual growth rates in January 2023 than in December 2022. The manufacture of chemical and chemical products posted the slowest annual growth rate of 1.3 percent during the month from 18.7 percent in December 2022.

Meanwhile, four industry divisions posted negative annual rates in January 2023 from positive annual growth rates in the previous month. The manufacture of rubber and plastic products registered the fastest annual drop of -1.1 percent during the period from an annual increment of 10.0 percent in the previous month.

Completing the 22 industry divisions were manufacture of textiles, manufacture of furniture, and printing and reproduction of recorded media which continued to post annual decreases in January 2023. (Tables E and 3)

The VaNSI for manufacture of food products registered an annual increment of 22.2 percent in January 2023. This was higher compared with the December 2022 annual growth rate of 13.1 percent and with the January 2022 annual increase of 7.7 percent. (Figure 5, and Tables 3 and 3a)

The expansion in the annual growth of the VaNSI for manufacture of food products in January 2023 was mainly attributed by the higher annual increase in the index of processing and preserving of meat industry group with 51.4 percent annual increment in January 2023 from an annual drop of -3.3 percent in the previous month. Other primary contributors to the higher year-on-year growth of VaNSI for manufacture of food products were manufacture of prepared animal feeds with an annual increase of 28.9 percent during the month from 0.4 percent in December 2022; and processing and preserving of fish, crustaceans and mollusks with 12.6 percent annual upturn in January 2023 from 0.4 percent in the previous month. (Table 3a)

4. Volume of Net Sales Index

The Volume of Net Sales Index (VoNSI) for manufacturing showed an expansion of 15.1 percent in January 2023 compared with its 10.8 percent annual growth in December 2022. In January 2022, VoNSI recorded a slower annual increase of 12.4 percent. (Figure 4, and Tables A and 4)
              
The expansion in the annual growth of VoNSI in January 2023 was mainly contributed by the annual upturn in the index of manufacture of basic metals with 30.1 percent annual increase in January 2023 from -26.2 percent in December 2022. The manufacture of basic metals shared 28.0 percent to the acceleration in the annual growth of VoNSI of the manufacturing sector in January 2023.

Other main contributors to the annual growth rate of VoNSI in January 2023 were manufacture of food products with an annual growth rate of 14.7 percent during the period from 5.1 percent in the previous month; and manufacture of fabricated metal products, except machinery and equipment with an annual growth of 29.1 percent in January 2023 from -32.4 percent in the past month.

In addition to these three, manufacture of electrical equipment and manufacture of wearing apparel recorded annual increments of 29.3 percent and 24.6 percent, respectively, during the month from their annual declines in December 2022. Furthermore, three industry divisions exhibited higher year-on-year increments in their indices during the month.

On the contrary, slowdowns were noted in the annual growth rates of the indices of four industry divisions, namely:

a) Manufacture of beverages, 37.7 percent from 71.3 percent in the previous month;
b) Manufacture of coke and refined petroleum products, 31.7 percent from 37.1 percent in December 2022;
c) Manufacture of machinery and equipment except electrical, 24.8 percent from 48.7 percent in the past month; and
d) Manufacture of paper and paper products, 1.0 percent from 2.2 percent in the previous month.

Meanwhile, annual declines during the period were noted in the indices of five industry divisions from positive annual growth rates in the previous month. The manufacture of chemical and chemical products posted the fastest annual decrease of -1.2 percent in January 2023 from 11.1 percent annual increase in the previous month.

Lastly, the remaining five industry divisions continued to record annual drops in January 2023, but these rates were slower compared with their December 2022 figures. (Tables F and 4)

The VoNSI for manufacture of food products registered an annual increment of 14.7 percent in January 2023 from an annual growth of 5.1 percent in December 2022. In January 2022, the VoNSI for manufacture of food products posted an annual increase of 1.7 percent. (Figure 5, and Tables 4 and 4a)

The higher year-on-year growth of the VoNSI for manufacture of food products in January 2023 was primarily contributed by the higher annual increases in the indices of the same top three industry groups that brought about the increase in the VaNSI of food manufacturing. These were as follows:

a) Processing and preserving of meat industry group with 43.4 percent annual increment in January 2023 from -8.6 percent in the previous month;
b) Manufacture of prepared animal feeds with an annual increase of 13.6 percent during the month from -10.2 percent in December 2022; and
c) Processing and preserving of fish, crustaceans and mollusks with 5.3 percent annual upturn in January 2023 from an annual drop of -10.0 percent in the previous month. (Table 4a)

B. Average Capacity Utilization Rate

Based on responding establishments, the average capacity utilization rate for manufacturing sector in January 2023 was reported at 72.6 percent from 71.5 percent in the previous month.

Almost all the industry divisions reported capacity utilization rates of more than 60 percent except for manufacture of paper and paper products (56.1%).  The top three industry divisions in terms of reported capacity utilization rate were manufacture of wearing apparel (78.3%), manufacture of machinery and equipment except electrical (77.8%), and manufacture of transport equipment (77.3%). (Table 6)

The proportion of establishments that operated at full capacity (90% to 100%) was 21.1 percent of the total number of responding establishments. Meanwhile, 39.6 percent operated at 70 to 89 percent capacity, while 39.3 percent operated below 70 percent capacity.  (Table B)