A. Year-on-year Growth for October 2023
1. Value of Production Index (VaPI)
The VaPI for manufacturing continued to increase at an annual rate of 1.3 percent in October 2023. This was slower compared with its annual growth of 9.6 percent in the previous month. In October 2022, VaPI recorded a double-digit annual increase of 14.5 percent. (Figure 2, and Tables A and 1)
The slower increment in the annual growth of VaPI during the month was primarily brought about by the double-digit annual drop in the manufacture of beverages industry division at 26.3 percent in September 2023 from 23.1 percent annual increase in the previous month. The manufacture of beverages contributed 46.5 percent to the downtrend of VaPI for the manufacturing section in October 2023. Out of the 22 industry divisions for the manufacturing section, manufacture of beverages was the fourth industry division with the highest weight in the computation of VaPI.
[1] Refer to Method of Computation in the Technical Notes
Other primary contributors to the slower year-on-year growth of VaPI in October 2023 were the slowdown in the annual increase of manufacture of coke and refined petroleum products at 36.2 percent from an annual increase of 66.9 percent in the previous month, and manufacture of computer, electronic and optical products with an annual drop of 1.3 percent in October 2023 from 4.5 percent annual increment in the previous month.
Of the remaining 19 industry divisions, 13 exhibited annual reductions in their indices during the period. Meanwhile, six industry divisions posted annual increases in October 2023. (Tables C and 1)
The top three industry divisions contributing to the overall year-on-year growth of VaPI for manufacturing in October 2023 were the following:
a. Manufacture of beverages;
b. Manufacture of food products; and
c. Manufacture of chemical and chemical products.
The VaPI for manufacture of food products registered an annual drop of 6.0 percent in October 2023. This was slower compared with its annual decline in September 2023 at 6.7 percent. In October 2022, VaPI for manufacture of food products recorded a double-digit annual increase of 14.4 percent. (Figure 3, and Tables 1 and 1a)
The slower year-on-year decline of VaPI for manufacture of food products in October 2023 was primarily brought about by the double-digit annual increment recorded in the manufacture of dairy products industry group at 24.2 percent in October 2023 from an annual decline of 33.4 percent in September 2023.
Other contributors to the slower year-on-year downturn of VaPI for manufacture of food products were the annual increase in the processing and preserving of meat at 13.9 percent in October 2023 from 9.8 percent annual increase in the previous month, and the slower decline in the processing and preserving of fruits and vegetables at 17.6 percent from 17.9 percent annual drop in the previous month. (Table 1a)
2. Volume of Production Index (VoPI)
The VoPI for manufacturing registered a year-on-year increment of 1.7 percent in October 2023, which was slower than the annual growth rate of 9.9 percent in the previous month. In October 2022, VoPI recorded an annual increase of 6.7 percent. (Figure 2, and Tables A and 2)
The slower annual growth of the VoPI in October 2023 was mainly brought about by annual decreases in the same top three industry divisions that contributed to the slower annual rate of VaPI during the period. These were the following:
Manufacture of beverages, 33.9 percent annual decline from 13.0 percent annual upturn in the previous month;
Manufacture of coke and refined petroleum products, 46.8 percent annual increase from 78.5 percent annual increment in September 2023; and
Manufacture of computer, electronic and optical products, 1.9 percent annual drop from 4.2 percent annual increase in September 2023.
Of the remaining 19 industry divisions, 13 exhibited annual decelerations in their indices during the period. In contrast, there were six industry divisions that recorded annual increments in October 2023. (Tables D and 2)
The top three industry divisions contributing to the overall year-on-year growth of VoPI for manufacturing in October 2023 were the following:
a. Manufacture of beverages;
b. Manufacture of food products; and
c. Manufacture of wood, bamboo, cane, rattan articles and related products.
The VoPI for manufacture of food products registered an annual drop of 6.3 percent in October 2023. This was slower compared with its annual decline of 8.0 percent in September 2023. In October 2022, VoPI for manufacture of food products recorded an annual increase of 4.1 percent. (Figure 3, and Tables 2 and 2a)
The slower annual decrease of VoPI for manufacture of food products in October 2023 was primarily driven by the annual increase in the manufacture of dairy products industry group at 22.1 percent during the month from 34.9 percent annual decrement in the previous month.
Other contributors to the slower year-on-year decrease of VoPI for manufacture of food products were the double-digit annual increase observed in the processing and preserving of meat at 10.8 percent in October 2023 from an annual increase of 6.5 percent in the previous month, and the slower annual decline noted in processing and preserving of fruits and vegetables at 16.8 percent in October 2023 from an annual decrease of 20.5 percent in the previous month. (Table 2a)
3. Value of Net Sales Index (VaNSI)
The VaNSI for manufacturing recorded a faster annual decrease of 3.4 percent in October 2023 compared with its annual drop of 0.1 percent in the previous month. In October 2022, VaNSI recorded a double-digit annual increase of 28.0 percent. (Figure 5, and Tables A and 3).
The faster year-on-year decline of VaNSI during the month was primarily brought about by the annual decrease in the manufacture of coke and refined petroleum products industry division at 4.3 percent in October 2023 from 17.7 percent annual increment in September 2023. The manufacture of coke and refined petroleum products contributed 31.7 percent to the trend of VaNSI for the manufacturing section in October 2023.
Other main contributors to the faster annual decline of VaNSI in October 2023 were the slower annual increase of manufacture of beverages at 1.9 percent during the period from a double-digit growth rate of 19.5 percent in the previous month, and manufacture of computer, electronic and optical products with a faster annual decrease of 10.6 percent during the period from an annual drop of 3.7 percent in September 2023.
Furthermore, 13 out of the 19 remaining industry divisions exhibited annual downturns in their indices during the period, while the other six industry divisions posted annual increases. The highest year-on-year increment was noted in the manufacture of basic pharmaceutical products and pharmaceutical preparations at 17.5 percent during the period. (Tables E and 3)
The top three industry divisions contributing to the overall year-on-year growth of VaNSI for manufacturing in October 2023 were the following:
a. Manufacture of computer, electronic and optical products;
b. Manufacture chemical and chemical products; and
c. Manufacture of transport equipment.
The VaNSI for manufacture of food products registered an annual decline of 1.0 percent during the month after exhibiting an annual increment of 0.2 percent in September 2023. In October 2022, VaNSI for manufacture of food products posted an annual growth of 8.5 percent. (Figure 6, and Tables 3 and 3a)
The downturn in the year-on-year growth of the VaNSI for manufacture of food products in October 2023 from an annual increase in the previous month was primarily driven by the faster annual decline in the manufacture of vegetable and animal oils and fats industry group at 27.6 percent in October 2023 from 10.3 percent annual decrement in the previous month.
Other primary contributors to the year-on-year decrement of VaNSI for manufacture of food products were the annual drop observed in manufacture of other food products at 2.8 percent during the month from a 0.5 percent annual increase in the previous month, and the faster annual decline noted in processing and preserving of fruits and vegetables at 13.5 percent in October 2023 from an annual drop of 6.8 percent in the previous month. (Table 3a)
4. Volume of Net Sales Index (VoNSI)
The VoNSI for manufacturing registered a year-on-year decrement of 3.1 percent in October 2023 from an annual increase of 0.1 percent in September 2023. In October 2022, VoNSI recorded a double-digit annual increase of 19.3 percent. (Figure 5, and Tables A and 4)
The annual drop of VoNSI in October 2023 from an annual increase in September 2023 was mainly brought about by the top three industry divisions that contributed to the slower annual decrease of VoNSI during the period. These were the following:
a. Manufacture of coke and refined petroleum products, 3.1 percent annual increase from 25.9 percent annual increment in the previous month;
b. Manufacture of beverages, 8.5 percent annual decrease from a double-digit annual increment of 10.0 percent in the past month; and
c. Manufacture of computer, electronic and optical products, 11.2 percent annual decrease from 3.7 percent annual drop in September 2023.
Furthermore, 11 out of the 19 remaining industry divisions exhibited annual downturns during the period. Meanwhile, eight industry divisions posted annual increases in October 2023. The manufacture of basic pharmaceutical products and pharmaceutical preparations posted the highest annual uptick of 16.0 percent during the period. (Tables F and 4)
The top three industry divisions contributing to the overall year-on-year growth of VoNSI for manufacturing in October 2023 were the following:
Manufacture of computer, electronic and optical products;
b. Manufacture of beverages; and
c. Manufacture of food products.
The VoNSI for manufacture of food products registered an annual drop of 1.4 percent in October 2023. This was lower compared with its annual decline of 1.9 percent in September 2023. In October 2022, VoNSI for manufacture of food products also recorded an annual decrease of 1.4 percent. (Figure 6, and Tables 4 and 4a)
The slower annual decrease of VoNSI for manufacture of food products in October 2023 was primarily driven by the annual increase in the manufacture of dairy products industry group at 9.7 percent during the month after registering an annual decrement of 2.4 percent in the previous month.
Other contributors to the slower year-on-year decrease of VoNSI for manufacture of food products were the annual increase observed in the manufacture of prepared animal feeds at 6.8 percent in October 2023 from an annual increase of 3.1 percent in the previous month, and the annual upturn noted in processing and preserving of fish, crustaceans and mollusks at 2.0 percent in October 2023 from an annual decline of 1.3 percent in the previous month. (Table 4a)
B. Average Capacity Utilization Rate
Based on responding establishments, the average capacity utilization rate for the manufacturing section in October 2023 was reported at 74.3 percent from 74.4 percent in the previous month.
All industry divisions reported capacity utilization rates of more than 50.0 percent during the month. The top three industry divisions in terms of reported capacity utilization rate were manufacture of machinery and equipment except electrical (83.3%), manufacture of rubber and plastic products (81.2%), and manufacture of tobacco products (80.5%). (Table 6)
The proportion of establishments that operated at full capacity (90% to 100%) was 27.1 percent of the total number of responding establishments. Meanwhile, 38.8 percent operated at 70 to 89 percent capacity, and 34.1 percent operated below 70 percent capacity. (Table B)
CLAIRE DENNIS S. MAPA, PhD
Undersecretary
National Statistician and Civil Registrar General
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