PRODUCTION
Value of Production Index still exhibited a downtrend
The Value of Production Index (VaPI) for manufacturing posted an annual decrement of -5.1 percent in December 2020 compared with the faster drop of -11.5 percent in the previous month. The decline of VaPI in December 2020 was the tenth consecutive month of contraction and the lowest decrease since March 2020. In December 2019, VaPI dropped by -6.8 percent. (Table A)
The slower downturn in the VaPI for the sector was influenced by the increases in the indices of six (6) industry groups. These industries were led by paper and paper products which exhibited a two-digit growth of 13.8 percent. Contributing further to the narrower decline in December 2020 were the slower annual decreases in the indices of seven (7) industry groups. (Tables 1-A and 1)
On the other hand, the average annual growth rate for VaPI in 2020 was recorded at -13.9 percent. This annual rate dropped faster than the -6.9 percent registered in 2019.
Volume of Production Index likewise continued to decrease
The Volume of Production Index (VoPI) for the manufacturing sector also continued to drop at an annual rate of -2.8 percent in December 2020, from a faster decline of -8.6 percent in the previous month. In December 2019, the annual growth rate of VoPI was recorded at -7.3 percent. (Table A)
Of the 20 industry groups, positive growths were observed in five (5) industry groups, namely, paper and paper products (26.8%), chemical products (7.5%), electrical machinery (5.7%), food manufacturing (5.4%), and rubber and plastic products (4.9%) in December 2020. (Tables 1-B and 2)
Contributing further to the narrower downturn in VoPI for the sector in December 2020 were the slower annual decreases in the indices of eight (8) industry groups. (Tables 1-B and 2)
Meanwhile, the 2020 average annual growth rate for VoPI was posted at -10.3 percent. This contraction in VoPI was faster than the reported annual decrease of -8.4 percent in 2019.
NET SALES
Value of Net Sales Index continued to decline at a slower pace
The Value of Net Sales Index (VaNSI) for manufacturing sector in December 2020 likewise contracted at a slower rate of -6.9 percent compared with the -12.8 percent decrease in November 2020. The contraction in December 2020 was the 11th consecutive month of decline and the lowest since March 2020. In December 2019, the year-on-year rate was at -2.0 percent. (Table A)
Major contributors to the slower drop in VaNSI for the sector in December 2020 were the two-digit increases observed in the following industries: transport equipment (24.2%), leather products (20.6%), and chemical products (10.8%). The narrower decline in the indices of eight (8) industry groups also tapered off the rate of decrease in the index of the sector. (Tables 2-A and 3)
In contrast, the average annual growth rate for VaNSI in 2020 was at -16.2 percent, a faster drop compared to the -1.2 percent annual rate in 2019.
Volume of Net Sales Index also dropped
The Volume of Net Sales Index (VoNSI) remained at a downward trend in December 2020 with annual growth rate of -4.6 percent. The annual rate dropped at a slower rate than the -9.9 percent in the previous month. In December 2019, the annual decrease was observed at -2.6 percent. (Table A)
The slower downturn in VoNSI for the sector in December 2020 was influenced by the two-digit increments in the indices of three (3) industry groups, namely, transport equipment (30.7%), leather products (28.7%), and chemical products (14.0%). Further tapering off the annual decline in VoNSI for manufacturing were nine (9) industry groups with narrower decline in their indices. (Tables 2-B and 4)
On the contrary, the 2020 average annual growth rate for VoNSI was recorded at -12.7 percent. This decline in VoNSI was faster than the -2.7 percent annual rate in 2019.
CAPACITY UTILIZATION
Average capacity utilization rate for manufacturing slightly decreased
Based on responding establishments, the average capacity utilization rate for the manufacturing sector in December 2020 was posted at 72.8 percent from 75.6 percent in the previous month.
Five of the 20 industry groups had at least 80 percent average capacity utilization rate, which was led by machinery except electrical (88.3%), textiles (86.2%), and non-metallic mineral products (82.7%). (Table 6)
About sixteen percent of responding establishments operated at full capacity
The proportion of establishments that operated at full capacity (90% to 100%) was 15.6 percent of the total number of responding establishments. Meanwhile, 37.5 percent operated at 70 to 89 percent capacity, while 47.0 percent operated below 70 percent capacity. (Table B)
(Sgd.) DENNIS S. MAPA, Ph. D.
Undersecretary
National Statistician and Civil Registrar General
Attachments:
1. Table 1. Value of Production Index (2000=100) Year-on-Year Growth Rates for Manufacturing Sector, January 2019 – December 2020p
2. Table 2. Volume of Production Index (2000=100) Year-on-Year Growth Rates for Manufacturing Sector, January 2019 – December 2020p
3. Table 3. Value of Net Sales Index (2000=100) Year-on-Year Growth Rates for Manufacturing Sector, January 2019 – December 2020p
4. Table 4. Volume of Net Sales Index (2000=100) Year-on-Year Growth Rates for Manufacturing Sector, January 2019 – December 2020p
5. Table 5. Producer Price Index (2000=100) Year-on-Year and Month-on-Month Growth Rates for Manufacturing Sector, January 2019 – December 2020p
6. Table 6. Average Capacity Utilization Rate by Major Industry Group: MISSI, December 2019 - December 2020p
7. Table 7. Distribution of Samples and Responding Establishments by Major Industry Group: MISSI, November 2020 and December 2020p
8. Table 8. Distribution of Samples and Responding Establishments by Major Industry Group: PPS, November 2020 and December 2020p
9. Technical Notes
by Industry Group: November and December 2020
(2000 = 100)
by Industry Group: November and December 2020
(2000 = 100)
by Industry Group: November and December 2020
(2000 = 100)
by Industry Group: November and December 2020
(2000 = 100)
