A. Year-on-year Growth for August 2024

1. Value of Production Index (VaPI)

The VaPI for the manufacturing section registered a slower annual increment of 1.8 percent in August 2024 relative to its annual increase of 6.4 percent in July 2024. This brings the average growth rate of VaPI for manufacturing from January to August 2024 to 0.8 percent. The VaPI for manufacturing recorded an annual increase of 6.1 percent in August 2023. (Figure 2, and Tables A and 1)

The slower year-on-year growth rate of VaPI for manufacturing in August 2024 was mainly attributed to the slower annual growth rate of the manufacture of food products industry division at 1.0 percent during the month from an annual increment of 14.0 percent in July 2024. The manufacture of food products contributed 41.3 percent to the deceleration in the annual rate of VaPI for the manufacturing section in August 2024. Out of the 22 industry divisions for the manufacturing section, manufacture of food products was the industry division with the highest weight  in the computation of VaPI for manufacturing.

Other primary contributors to the slower year-on-year increase of VaPI for manufacturing in August 2024 were the slower annual increases noted in the manufacture of computer, electronic and optical products industry division at 5.1 percent during the month from a double-digit annual increase of 15.2 percent in the previous month, and manufacture of coke and refined petroleum products at 11.6 percent during the month from its 19.1 percent annual increase in July 2024.

Of the remaining 19 industry divisions, eight exhibited annual declines in their VaPI during the period. Meanwhile, 11 industry divisions posted annual increases in August 2024. The manufacture of textiles posted the highest annual increment of 27.8 percent during the period. (Tables C and 1)

The top three industry divisions contributing to the overall year-on-year growth of VaPI for manufacturing in August 2024 were the following:

a. Manufacture of coke and refined petroleum products;             
b. Manufacture of beverages; and             
c. Manufacture of computer, electronic and optical products.

For manufacture of food products, the VaPI registered a slower year-on-year increment of 1.0 percent in August 2024 from a double-digit annual growth rate of 14.0 percent in July 2024. In August 2023, the VaPI for manufacture of food products posted an annual decline of 2.2 percent. (Figure 3, and Tables 1 and 1a)

The slower annual increment of VaPI for manufacture of food products in August 2024 was mainly brought about by the deceleration in the annual growth rate of the manufacture of other food products industry group at 15.9 percent in August 2024 from 28.2 percent in the previous month. The manufacture of other food products industry group includes bakery products, sugar, and condiments, among others.

Other primary contributors to the deceleration in the year-on-year increase of VaPI for manufacture of food products were the annual drop in the VaPI of processing and preserving of fruits and vegetables at 20.6 percent from an annual increment of 17.1 percent in the previous month, and the slower annual increase observed in the VaPI of manufacture of vegetable and animal oils and fats at 11.9 percent from an annual increment of 42.6 percent in the previous month. (Table 1a)

2. Volume of Production Index (VoPI)

In August 2024, the VoPI for the manufacturing section registered a year-on-year growth rate of 2.8 percent, slower than its annual increase of 6.8 percent in July 2024. This brings the average growth rate of VoPI for manufacturing from January to August 2024 to 1.7 percent. In August 2023, the VoPI for manufacturing also recorded an annual increase of 5.6 percent. (Figure 2, and Tables A and 2)

The deceleration in the year-on-year growth rate of VoPI for manufacturing in August 2024 was primarily driven by the same top three industry divisions that contributed to the slower annual increase of VaPI for manufacturing during the period. These were the following:

          a. Manufacture of food products, 0.6 percent annual increment from a double-digit annual increase of 13.1 percent in July 2024;

          b. Manufacture of computer, electronic and optical products, 4.2 percent annual increment from a 13.2 percent annual increase in the previous month; and

          c. Manufacture of coke and refined petroleum products, 15.5 percent annual growth from a 20.4 percent annual increment in July 2024.

Of the remaining 19 industry divisions, six exhibited annual declines during the period. Meanwhile, 13 industry divisions posted annual increases in August 2024. (Tables D and 2)

The top three industry divisions contributing to the overall year-on-year growth rate of VoPI for manufacturing in August 2024 were the following:

          a.    Manufacture of coke and refined petroleum products;    
          b.    Manufacture of beverages; and   
          c.    Manufacture of computer, electronic and optical products.

For manufacture of food products, the VoPI registered a slower year-on-year growth rate of 0.6 percent in August 2024 from a double-digit annual increase of 13.1 percent in July 2024. In August 2023, the VoPI for manufacture of food products posted an annual decline of 4.0 percent. (Figure 3, and Tables 2 and 2a)

The deceleration in the annual growth rate of VoPI for manufacture of food products in August 2024 was mainly brought about by the same top three industry groups that contributed to the slower year-on-year growth rate of VoPI for manufacture of food products. These were the following:

          a.   Manufacture of other food products;    
          b.   Manufacture of vegetable and animal oils and fats; and   
          c.   Processing and preserving of fish, crustaceans and mollusks. (Table 2a)

3. Value of Net Sales Index (VaNSI)

The VaNSI for the manufacturing section registered an annual increase of 0.7 percent in August 2024, slower than its annual increment of 5.0 percent in July 2024. This brings the average growth rate of VaNSI for manufacturing from January to August 2024 to 0.6 percent. In August 2023, the VaNSI for manufacturing recorded an annual increase of 0.2 percent. (Figure 5, and Tables A and 3).

The deceleration in the annual growth rate of VaNSI for manufacturing in August 2024 was mainly attributed to the slower annual increase in the manufacture of computer, electronic and optical products at 5.3 percent in August 2024 from a double-digit annual increment of 18.7 percent in the previous month. The manufacture of computer, electronic and optical products contributed 50.4 percent to the slower annual increment of VaNSI for the manufacturing section in August 2024.

Other main contributors to the deceleration in the annual growth rate of VaNSI for manufacturing in August 2024 were the slower year-on-year increments in the manufacture of chemical and chemical products at 8.7 percent in August 2024 from a double-digit annual growth rate of 30.3 percent in the previous month, and manufacture of transport equipment at 1.3 percent in August 2024 from an annual increase of 4.5 percent in July 2024.

Of the remaining 19 industry divisions, seven exhibited annual declines during the period. Meanwhile, 12 industry divisions posted annual increases in August 2024. The manufacture of fabricated metal products, except machinery and equipment posted the highest annual increment of 33.0 percent during the period. (Tables E and 3)

The top three industry divisions contributing to the overall year-on-year growth rate of VaNSI for manufacturing in August 2024 were the following:

a. Manufacture of beverages;             
b. Manufacture of fabricated metal products, except machinery and equipment; and
c. Manufacture of food products. (Table 3a)

For manufacture of food products, the VaNSI registered a year-on-year growth rate of 5.3 percent in August 2024. This was slower compared with its annual increase of 5.9 percent in July 2024. In August 2023, the VaNSI for manufacture of food products posted an annual increase of 0.4 percent. (Figure 6, and Tables 3 and 3a)

The slower annual increase of VaNSI for manufacture of food products in August 2024 was primarily driven by the deceleration in the annual growth rate of manufacture of vegetable and animal oils and fats at 20.6 percent during the month from an annual increase of 46.6 percent in the previous month.

Other primary contributors to the slower annual growth rate of VaNSI for manufacture of food products were the annual drop observed in the manufacture of grain mill products, starches and starch products industry group at 20.8 percent during the month from an annual increase of 7.0 percent in the previous month, and the further annual decline in the processing and preserving of fruits and vegetables at 5.4 percent during the month from an annual decrease of 5.0 percent in July 2024. (Table 3a)

4. Volume of Net Sales Index (VoNSI)

The VoNSI for the manufacturing section registered a year-on-year growth rate of 1.7 percent in August 2024 relative to its annual increase of 5.4 percent in July 2024. This brings the average growth rate of VoNSI for manufacturing from January to August 2024 to 1.4 percent. The VoNSI for manufacturing recorded an annual decrease of 0.4 percent in August 2023. (Figure 5, and Tables A and 4)

The deceleration in the annual growth rate of VoNSI in August 2024 was mainly brought about by the same top three industry divisions that contributed to the slower annual increase of VaNSI during the period. These were the following:

a.    Manufacture of computer, electronic and optical products, 4.4 percent annual growth rate from a double-digit annual increase of 16.6 percent in the previous month;        
b.    Manufacture of chemical and chemical products, 7.4 percent annual increase from 29.0 percent annual increment in the previous month; and
c.    Manufacture of transport equipment, 0.4 percent annual drop from an annual increase of 1.9 percent in July 2024.

Of the remaining 19 industry divisions, six exhibited annual declines during the period. Meanwhile, 13 industry divisions posted annual increases in August 2024. The manufacture of fabricated metal products, except machinery and equipment posted the highest annual increment of 37.7 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 August 2024 were the following:

                             a.    Manufacture of fabricated metal products, except machinery and equipment;        
                             b.    Manufacture of coke and refined petroleum products; and       
                             c.    Manufacture of food products.

For manufacture of food products, the VoNSI registered a year-on-year growth rate of 4.8 percent in August 2024. This was slower compared with its annual increase of 5.1 percent in July 2024. In August 2023, the VoNSI for manufacture of food products posted an annual decline of 1.5 percent. (Figure 6, and Tables 4 and 4a)

The deceleration in the year-on-year growth rate of VoNSI for manufacture of food products in August 2024 was primarily driven by the same top three industry groups that contributed to the slower year-on-year growth rate of VoNSI for manufacture of food products. These were the following:

                             a.    Manufacture of vegetable and animal oils and fats;  
                             b.    Manufacture of grain mill products, starches and starch products; and  
                             c.    Processing and preserving of fruits and vegetables. (Table 4a)

B. Average Capacity Utilization Rate

Based on responding establishments, the average capacity utilization rate for the manufacturing section in August 2024 was reported at 75.5 percent, lower than the 75.7 percent capacity utilization rate in the previous month. In August 2023, the average capacity utilization rate was recorded at 74.0 percent.

All industry divisions reported capacity utilization rates of more than 60.0 percent during the month. The top three industry divisions in terms of reported capacity utilization rate were manufacture of manufacture of textiles (82.2%), manufacture of other non-metallic mineral products (82.0%), and manufacture of machinery and equipment except electrical (82.0%). (Table 6)

The proportion of establishments that operated at full capacity (90% to 100%) was 28.9 percent of the total number of responding establishments. Meanwhile, 41.1 percent operated at 70 to 89 percent capacity, and 30.0 percent operated below 70 percent capacity. (Table B)

CLAIRE DENNIS S. MAPA, PhD             
Undersecretary             
National Statistician and Civil Registrar General

 

 

 

 

 

 

 

 

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