PRODUCTION

Value of Production Index remained at a downward trend

The Value of Production Index (VaPI) for manufacturing posted a downturn with an annual rate of -13.8 percent in November 2020. This contraction in VaPI was faster than the reported decrease in the previous month of -12.3 percent and the annual decline in November 2019 of -7.2 percent. The November 2020 figure was the ninth consecutive month that VaPI had a negative growth rate.  (Table A)

Contributory to the faster annual decline of VaPI for the manufacturing sector in November 2020 were the decreases in the indices of 17 industry groups. Among these industry groups, the top three were petroleum products (-66.0%), tobacco products (-56.9%) and printing (-50.8%).  (Tables 1-A and 1)

Volume of Production Index also declined further

The Volume of Production Index (VoPI) likewise dropped further at an annual rate of -10.8 percent in November 2020, from -9.3 percent in the previous month. In November 2019, VoPI decreased at a slower rate of -7.6 percent.  (Table A)

The downtrend in the VoPI for the sector was influenced by the two-digit decrements in the indices of 16 industry groups led by petroleum products (-61.9%), tobacco products (-58.6%) and printing (-51.5%).  (Tables 1-B and 2)

NET SALES

Value of Net Sales Index posted a slower negative growth rate

The Value of Net Sales Index (VaNSI) continued to drop at an annual rate of -10.8 percent in November 2020. This decline, however, was slower than the reported annual decrease of -12.6 percent in the previous month. The decline in November 2020 was the ninth consecutive month of contraction for VaNSI. In November 2019, the annual growth rate of VaNSI was recorded at -5.6 percent.  (Table A)

Of the 20 industry groups, positive growths were observed in five (5) industry groups, namely, tobacco products (27.4%), food manufacturing (18.3%), basic metals (6.4%), miscellaneous manufactures (4.6%) and wood and wood products (3.7%) in November 2020.

Contributing further to the narrower decline in VaNSI for the manufacturing sector in November 2020 were the slower annual decreases in the indices of nine (9) industry groups. Among these, three (3) were heavily weighted industry groups such as electrical machinery, petroleum products and transport equipment.  (Tables 2-A and 3)

Volume of Net Sales Index also contracted

The Volume of Net Sales Index (VoNSI) also recorded a year-on-year decrement of -7.6 percent in November 2020 compared with the faster drop of -9.6 percent in the previous month. In November 2019, the annual decrease was observed at -6.0 percent.

The slower decline in VoNSI for the manufacturing sector in November 2020 could be attributed to the two-digit increases observed in tobacco products (22.5%), food manufacturing (17.2%) and basic metals (10.8%). Likewise, the slower decrease in the indices of seven (7) industry groups tapered off the rate of decline in the index for the sector.  (Tables 2-B and 4)

CAPACITY UTILIZATION

Average capacity utilization rate for manufacturing dropped

Based on responding establishments, the average capacity utilization rate for the manufacturing sector in November 2020 was posted at 70.9 percent from 71.8 percent in the previous month.

Six of the 20 industry groups had at least 80 percent average capacity utilization rate which was led by machinery except electrical (91.7%), followed by electrical machinery (85.4%), and furniture and fixtures (84.4%).  (Table 6)

One-fifth of responding establishments operated at full capacity

The proportion of establishments that operated at full capacity (90% to 100%) was 20.1 percent of the total number of responding establishments. More than forty percent (45.6%) operated at 70 to 89 percent capacity, while less than forty percent (34.3%) 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 – November 2020
2. Table 2. Volume of Production Index (2000=100) Year-on-Year Growth Rates for Manufacturing Sector, January 2019 – November 2020
3. Table 3. Value of Net Sales Index (2000=100) Year-on-Year Growth Rates for Manufacturing Sector, January 2019 – November 2020
4. Table 4. Volume of Net Sales Index (2000=100) Year-on-Year Growth Rates for Manufacturing Sector, January 2019 – November 2020
5. Table 5. Producer Price Index (2000=100) Year-on-Year and Month-on-Month Growth Rates for Manufacturing Sector, January 2019 – November 2020
6. Table 6. Average Capacity Utilization Rate by Major Industry Group: MISSI, November 2019 - November 2020
7. Table 7. Distribution of Samples and Responding Establishments by Major Industry Group: MISSI, October 2020 and November 2020
8. Table 8. Distribution of Samples and Responding Establishments by Major Industry Group: PPS, October 2020 and November 2020
9. Technical Notes

TABLE 1-B.   Year-on-Year Growth Rate (%) of Volume of Production Index
by Industry Group
October and November 2020
(2000 = 100)

 

TABLE 2-A.   Year-on-Year Growth Rate (%) of Value of Net Sales Index
by Industry Group
October and November 2020
(2000 = 100)

 

TABLE 2-B.   Year-on-Year Growth Rate (%) of Volume of Net Sales Index
by Industry Group
October and November 2020
(2000 = 100)