PRODUCTION

Value of Production Index contracts slower

The Value of Production Index (VaPI) for Manufacturing continued to exhibit a downtrend at an annual rate of -11.9 percent in September 2020, from a faster decline of -13.3 percent in the previous month. The September 2020 figure was the seventh consecutive month that VaPI had a negative growth and the fifth straight month that it was declining at a slower rate. In September 2019, VaPI dropped by -6.5 percent.  (Table A)

The slower downturn in the VaPI for the sector was influenced by the increases in the indices of four industry groups, namely, basic metals (12.3%), food manufacturing (11.6%), chemical products (5.6%), and miscellaneous manufactures (1.6%). Contributing further to the slower drop in September 2020 for the sector was the slower decreases in the indices of 10 industry groups.  (Tables 1-A and 1)

Volume of Production Index continues to drop but at a slower rate

The Volume of Production Index (VoPI) for manufacturing sector in September 2020 likewise contracted at a slower rate of -8.4 percent compared with the -9.0 percent   decrease  in  August 2020.  In September of  the  previous year,  year-on-year rate was at -6.5 percent.  (Table A)

The major contributory to the slower decline in VoPI for manufacturing sector in September 2020 were the two-digit expansions observed in basic metals and food manufacturing with annual increases of 14.4 percent and 10.2 percent, respectively.  The slower drop in the indices of 10 industry groups also tapered off the rate of decline in the index for the sector.  (Tables 1-B and 2)

NET SALES

Value of Net Sales Index posts a slower negative rate

The Value of Net Sales Index (VaNSI) remained to drop at an annual rate of -9.7 percent in September 2020. This decline, however, was slower than the reported annual decrease of -11.7 percent in the previous month. The decline of VaNSI in September 2020 was the seventh consecutive month of contraction. In September 2019, the annual rate of VaNSI was recorded at -3.5 percent.  (Table A)

Of the 20 industry groups, positive growths were observed in four industry groups, namely, tobacco products (39.3%), food manufacturing (22.5%), chemical products (8.9%), and basic metals (4.9%) in September 2020.

Contributing further to the narrower decline in VaNSI for the manufacturing sector in September 2020 were the slower annual decreases in the indices of 11 industry groups. Of the 11 groups, four (4) were heavily weighted industry groups.  (Tables 2-A and 3)

Volume of Net Sales Index also drops

The Volume of Net Sales Index (VoNSI) posted an annual decrement of -6.1 percent in September 2020 compared with the faster drop of -7.4 percent in the previous month. In September 2019, the annual decrease was observed at -3.4 percent.  (Table A)

Contributory to the slower decline of VoNSI in September 2020  were the improvements for tobacco products with annual increase of 34.3 percent compared to the 6.5 percent increase in August 2020.  Further tapering off the annual decline in VoNSI for manufacturing were the five (5) industry groups that also posted positive growth rates and 11 industry groups  with slower annual drops in their indices.  (Tables 2-B and 4)

CAPACITY UTILIZATION

Average capacity utilization rate for manufacturing slightly increases

Based on responding establishments with responses on capacity utilization, average capacity utilization rate for manufacturing sector in September 2020 slightly increased to 67.6 percent from 67.2 percent in the previous month.

In the same month, eight (8) of the 20 industry groups had at least 80 percent average capacity utilization rate which was led by machinery except electrical (92.0%), followed by furniture and fixtures (88.4%), and paper and paper products (86.8%).  (Table 6)

Almost twenty percent of responding establishments operated at full capacity

The proportion of establishments that operated at full capacity (90% to 100%) was 17.7 percent of the total number of responding establishments with responses on capacity utilization. Further, 40.3 percent operated at 70 to 89 percent capacity, while 42.0 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 – September 2020^P
2. Table 2. Volume of Production Index (2000=100) Year-on-Year Growth Rates for Manufacturing Sector, January 2019 – September 2020^P
3. Table 3. Value of Net Sales Index (2000=100) Year-on-Year Growth Rates for Manufacturing Sector, January 2019 – September 2020^P
4. Table 4. Volume of Net Sales Index (2000=100) Year-on-Year Growth Rates for Manufacturing Sector, January 2019 – September 2020^P
5. Table 5. Producer Price Index (2000=100) Year-on-Year and Month-on-Month Growth Rates for Manufacturing Sector, January 2019 – September 2020^P
6. Table 6. Average Capacity Utilization Rate by Major Industry Group: MISSI, August 2019 - September 2020^P
7. Table 7. Distribution of Samples and Responding Establishments by Major Industry Group: MISSI, July 2020 and September 2020^P
8. Table 8. Distribution of Samples and Responding Establishments by Major Industry Group: PPS, July 2020 and September 2020^P
9. Technical Notes

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

 

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

 

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