PRODUCTION

Value of Production Index continued to decline

The Value of Production Index (VaPI) for Manufacturing continued to drop at an annual rate of -13.8 percent in August 2020. This decline, however, was slower than the reported annual decrease of -17.2 percent in the previous month.The August 2020 figure was the sixth consecutive month that VaPI had a negative growth and the fourth straight month that it was declining at a slower rate. In August 2019, VaPI dropped at a slower rate of -11.2 percent. (Table A)

Contributory to the slower decline of VaPI in August 2020 were seen in chemical products and basic metals with annual increases of 11.4 percent and 0.1 percent, respectively. Also, the slower drop in the indices of nine industry groups triggered the narrower rate of decrease of VaPI for the manufacturing sector.  (Tables 1-A, and 1)

Volume of Production Index posted a slower negative rate

The Volume of Production Index (VoPI) for manufacturing sector in August 2020 likewise contracted at a slower rate of -9.9 percent compared with the -14.6 percent decrease in  July 2020.   In August of  the  previous year,  year-on-year decline was -12.5 percent. (Table A)

The slower downtrend in the VoPI for the sector was influenced by the increases in the indices of two heavily weighted industry groups, namely, chemical products (17.1%), and basic metals (3.9%). Contributing further to the slower drop in August 2020 for the sector was the slower decreases in the indices of nine industry groups. (Tables 1-B, and 2)

NET SALES

Value of Net Sales Index posted two-digit negative growth rates

The Value of Net Sales Index (VaNSI) also continued to exhibit a downtrend at an annual rate of -12.5 percent in August 2020, from a faster decline of -14.9 percent in the previous month. The decline of VaNSI in August 2020 was the seventh consecutive month of contraction. In August 2019, VaNSI dropped by -5.3 percent.  (Table A)

Of the 20 industry groups, positive growths were observed in three industry groups, namely, tobacco products (35.0%), chemical products (17.5%) and food manufacturing (13.6%) in August 2020.

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

Volume of Net Sales Index dropped at slower pace

The Volume of Net Sales Index (VoNSI) posted an annual decrement of -8.5 percent in August 2020 compared with the faster drop of -12.2 percent in the previous month. In August 2019, the annual decrease was observed at -6.7 percent. (Table A)

The major contributory to the slower decline in VoNSI for manufacturing sector in August 2020 were the two-digit expansions observed in tobacco products, chemical products and food manufacturing with annual increases of 30.3 percent, 23.4 percent and 12.5 percent, respectively. The slower drop in the indices of five industry groups also 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 slightly decreased

Based on responding establishments with responses on capacity utilization, average capacity utilization rate for manufacturing sector in August 2020 slightly decreased to 65.3 percent from 66.9 percent in the previous month.

Seven of the 20 industry groups had at least 80 percent average capacity utilization rate which was led by machinery except electrical (87.9%), followed by rubber and plastic products (84.7%), and printing (84.4%). (Table 6)

Almost one-fifth of responding establishments operated at full capacity

The proportion of establishments that operated at full capacity (90% to 100%) was 17.4 percent of the total number of responding establishments with responses on capacity utilization. More than two-fifths (44.3%) operated at 70 to 89 percent capacity, and more than one-third (38.4%) 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 – August 2020^P
2. Table 2. Volume of Production Index (2000=100) Year-on-Year Growth Rates for Manufacturing Sector, January 2019 – August 2020^P
3. Table 3. Value of Net Sales Index (2000=100) Year-on-Year Growth Rates for Manufacturing Sector, January 2019 – August 2020^P
4. Table 4. Volume of Net Sales Index (2000=100) Year-on-Year Growth Rates for Manufacturing Sector, January 2019 – August 2020^P
5. Table 5. Producer Price Index (2000=100) Year-on-Year and Month-on-Month Growth Rates for Manufacturing Sector, January 2019 – August 2020^P
6. Table 6. Average Capacity Utilization Rate by Major Industry Group: MISSI, August 2019 - August 2020^P
7. Table 7. Distribution of Samples and Responding Establishments by Major Industry Group: MISSI, July 2020 and August 2020^P
8. Table 8. Distribution of Samples and Responding Establishments by Major Industry Group: PPS, July 2020 and August 2020^P
9. Technical Notes

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

 

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

 

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