A. Year-on-year Growth for February 2023

1. Value of Production Index (VaPI)

The VaPI for manufacturing continued to register a two-digit year-on-year increment at 11.1 percent in February 2023, but slower than the January 2023 annual growth of 16.0 percent. In February 2022, the VaPI accelerated annually at a rate of 77.2 percent. (Figure 2, Tables A and 1)

The slower annual growth of the VaPI in February 2023 was mainly contributed by the slower annual increase in the index of manufacture of food products industry division with 13.0 percent annual increment in February 2023 from 21.4 percent in the previous month. The manufacture of food products contributed 29.9 percent to the downtrend of VaPI for the manufacturing sector in February 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 slower annual growth rate of VaPI in February 2023 were manufacture of computer, electronic and optical products posting a faster annual decline of -10.9 percent during the period from -3.1 percent annual drop in the previous month; and manufacture of other non-metallic mineral products registering a slower annual increment of 2.6 percent during the period from 27.2 percent annual increase in the previous month. In addition, slowdowns were observed in the annual growth rates of the indices of six industry divisions.

Furthermore, the indices of five industry divisions recorded negative year-on-year growth rates in February 2023 after posting annual increases in the previous month. The highest negative growth rate was led by manufacturing of wearing apparel posting an annual drop of -22.7 percent from 1.3 percent in the previous month. Also, faster negative annual growth rates were noted during the period in the indices of manufacture of furniture (-19.8%) and manufacture of rubber and plastic products (-7.8%).

On the contrary, four industry divisions registered higher annual positive growth rates in February 2023 than in the previous month, the highest annual growth was noted in manufacture of basic metals with an annual upturn of 30.7 percent during the period from 16.6 percent in the previous month.

Lastly, manufacture of coke and refined petroleum products (6.7%) and manufacture of fabricated metal products, except machinery and equipment  (3.3%) exhibited positive annual growth rates during the period after posting annual declines in the past month.  (Tables C and 1)

In February 2023, the VaPI for manufacture of food products registered an annual increment of 13.0 percent. This was slower compared with the January 2023 annual growth rate of 21.4 percent and with the February 2022 annual increase of 26.8 percent. (Figure 3, and Tables 1 and 1a)

The slower increase in the annual growth of the VaPI for manufacture of food products in February 2023 was primarily driven by the slower annual increase in the index of manufacture of grain mill products, starches and starch products industry group with 12.3 percent annual increment in February 2023 from 42.1 percent annual rate in the previous month. Other primary contributors to the slower year-on-year growth of VaPI for manufacture of food products were manufacture of dairy products with an annual upturn of 23.3 percent during the month from an annual growth rate of 35.4 percent in January 2023, and manufacture of prepared animal feeds with -6.6 percent annual decrease in February 2023 from 4.6 percent annual increment in the previous month. (Tables 1 and 1a)

2. Volume of Production Index (VoPI)

The VoPI for manufacturing recorded a year-on-year increase of 7.2 percent in February 2023, slower than the double-digit annual growth rate of 11.2 percent in the previous month. In February 2022, VoPI recorded a faster annual increment of 69.8 percent. (Figure 3, Tables A and 2)

Similar to VaPI, the slower annual growth of VoPI in February 2023 was mainly due to the slower annual rate in the index of manufacture of food products at 6.4 percent from 14.0 percent in the previous month. The manufacture of food products contributed 29.7 percent to the downtrend of VoPI of the manufacturing sector in February 2023. Other main drivers to the decline of VoPI for the manufacturing sector were manufacture of computer, electronic and optical products, -14.2 percent from -6.9 percent; and manufacture of other non-metallic mineral products, -2.7 percent from 17.8 percent.

Other than these main contributors, the decline of the VoPI for the manufacturing sector in February 2023 was brought about by the following:

a) Five industry divisions recorded slowdowns in the annual growth rates of their indices as compared to their annual growth rates in the previous month;
b) Four industry divisions exhibited negative year-on-year annual rates after recording annual upturns in the previous month; and
c) Three industry divisions recorded faster annual drops during the month than in January 2023.

In contrast, there were five industry divisions that posted higher annual growth rates in February 2023 than in the previous month, the highest annual rate was recorded in other manufacturing and repair and installation of machinery and equipment with an annual increment of 34.0 percent during the month from 33.4 percent in the previous month.

Meanwhile, manufacture of coke and refined petroleum products index registered an annual increase of 2.4 percent during the period from an annual drop of -11.7 percent in the previous month.

Lastly, manufacture of fabricated metal products, except machinery and equipment index exhibited a slower negative annual growth rate in February 2023 at -2.1 percent from -5.7 percent annual decline in the previous month. (Tables D and 2)

The VoPI for manufacture of food products registered an annual increment of 6.4 percent in February 2023. This was slower compared with the double-digit annual growth rates in January 2023 at 14.0 percent and February 2022 at 18.8 percent. (Figure 3, and Tables 2 and 2a)

The slower increase in the annual growth of VoPI for manufacture of food products in February 2023 was primarily attributed by the slower annual increase in the index of manufacture of grain mill products, starches and starch products industry group with 6.8 percent annual increment in February 2023 from 30.9 percent in the previous month. Other primary contributors to the slowdown in the year-on-year growth of VaPI for manufacture of food products were manufacture of dairy products with a slower annual upturn of 15.1 percent during the month from 27.2 percent in January 2023, and manufacture of prepared animal feeds with a faster annual decrease of -18.2 percent in February 2023 from -7.6 percent annual drop in the previous month. (Tables 2 and 2a)

3. Value of Net Sales Index (VaNSI)

The VaNSI for manufacturing continued to increase in February 2023 but at a slower annual rate of 8.7 percent, compared with its annual growth of 19.5 percent in the previous month. In February 2022, VaNSI also recorded a higher annual increase of 23.0 percent. (Figure 4, Tables A and 3)

The slower year-on-year growth of VaNSI in February 2023 was mainly brought about by the slower annual increment in the index of manufacture of food products industry division with 9.6 percent annual increase during the month from an annual upturn of 21.9 percent in January 2023. The manufacture of food products contributed 29.9 percent to the slower annual growth of VaNSI of the manufacturing sector in February 2023.

Other main contributors to the slower annual growth rate of VaNSI in February 2023 were manufacture of computer, electronic and optical products with an annual decline of -17.1 percent during the period from an annual drop of -2.7 percent in the previous month; and manufacture of beverages with an annual growth of 17.5 percent in February 2023 from 39.2 percent in the previous month. In addition to these, slowdowns were observed in the annual growth rates of the indices of seven industry divisions during the month.

Furthermore, there were four industry divisions that posted annual drops in February 2023, after posting annual upturns in the previous month. This was led by manufacture of wearing apparel, which posted an annual decrease of -12.4 percent in February 2023 from 22.4 percent increase in the previous month. Faster annual decline was registered in manufacture of furniture at -15.9 percent during the month from an annual drop of -9.8 percent in January 2023.

In contrast, four industry divisions recorded higher annual growth rates in February 2023 than in January 2023. This was led by other manufacturing and repair and installation of machinery and equipment, which posted the highest annual growth rate of 63.6 percent during the month from a 22.6 percent growth in January 2023.

Completing the 22 industry divisions, three industry divisions exhibited positive annual growth rates in February 2023 after recording annual drops in the past month. (Tables E and 3)

The VaNSI for manufacture of food products registered an annual increment of 9.6 percent in February 2023. This was lower compared with the January 2023 annual growth rate of 21.9 percent and with the February 2022 annual increase of 14.5 percent. (Figure 5, and Tables 3 and 3a)

The slowdown in the annual growth of VaNSI for manufacture of food products in February 2023 was mainly contributed by the slower annual increase in the index of manufacture of grain mill products, starches and starch products industry group with 16.8 percent annual increment in February 2023 from an annual growth rate of 58.2 percent in the previous month. Other primary contributors to the slower year-on-year growth of VaNSI for manufacture of food products were the annual declines noted in processing and preserving of fruits and vegetables index at -16.3 percent in February 2023 from 9.8 percent annual increment in the previous month, and manufacture of vegetable and animal oils and fats with a faster annual decrease of -20.3 percent during the month from -1.8 percent annual drop in January 2023. (Table 3a)

4. Volume of Net Sales Index (VoNSI)

The VoNSI for manufacturing continued to register a year-on-year increment in February 2023, however, at a slower pace of 4.9 percent relative to the double-digit annual growth of 14.5 percent in January 2023. In February 2022, VoNSI recorded a higher annual increase of 17.9 percent. (Figure 4, and Tables A and 4)
              
The slower year-on-year growth of VoNSI in February 2023 was primarily brought about by the slower annual increase in the index of manufacture of food products industry division at 3.1 percent in February 2023 from 14.5 percent annual rate in January 2023. The manufacture of food products contributed 31.2 percent to the downtrend of VoNSI of the manufacturing sector in February 2023.

Other main contributors to the slower annual growth rate of VoNSI in February 2023 were manufacture of computer, electronic and optical products with -20.2 percent annual decline during the period from -6.5 percent in the previous month; and manufacture of beverages with an annual growth of 11.8 percent in February 2023 from 32.7 percent in the previous month.

Also contributed to the lower annual growth rate of VoNSI for manufacturing sector in February 2023 were the following:

a) Five industry divisions had lower annual growth rates than in the previous month;
b) Five industry divisions recorded annual drops, after posting annual increments in the previous month; and
c) Two industry divisions registered faster downturns than in the previous month.

On the contrary, higher annual growth rates were noted during the month in the indices of four industry divisions, the highest increase was noted in other manufacturing and repair and installation of machinery and equipment at 63.3 percent from 21.0 percent;

The remaining three industry divisions exhibited annual increments in February 2023, after registering annual declines in January 2023. (Tables F and 4)

The VoNSI for manufacture of food products registered an annual increment of 3.1 percent in February 2023 from a double-digit annual growth of 14.5 percent in January 2023. In February 2022, the VoNSI for manufacture of food products posted an annual increase of 7.4 percent. (Figure 5, and Tables 4 and 4a)

The slowdown in the year-on-year growth of VoNSI for manufacture of food products in February 2023 was primarily contributed by the slower annual growth rates in the indices of these three industry groups:

a) Manufacture of grain mill products, starches and starch products, 10.9 percent from 45.8 percent in January 2023;
b) Processing and preserving of fruits and vegetables, -15.3 percent from 11.0 percent in the previous month; and
c) Manufacture of vegetable and animal oils and fats, -18.3 percent from -0.5 percent in the past month. (Table 4a)

B. Average Capacity Utilization Rate

Based on responding establishments, the average capacity utilization rate for manufacturing sector in February 2023 was reported at 72.6 percent from 72.8 percent in the previous month.

Almost all of the industry divisions reported capacity utilization rates of more than 50 percent. The top three industry divisions in terms of reported capacity utilization rate were manufacture of machinery and equipment except electrical (81.6%), manufacture of transport equipment (78.9%), and manufacture of coke and refined petroleum products (77.8%). (Table 6)

The proportion of establishments that operated at full capacity (90% to 100%) was 22.1 percent of the total number of responding establishments. Meanwhile, 35.0 percent operated at 70 to 89 percent capacity, while 42.9 percent operated below 70 percent capacity.  (Table B)