PRODUCTION

Value of Production exhibited an upward trend

The Value of Production Index (VaPI) for manufacturing continued to accelerate at an annual rate of 528.1 percent in July 2021, from its previous month’s three-digit annual increase of 444.6 percent. The year-on-year growth rate in July 2021 was the highest annual growth rate in the 2018-based data series. In contrast, the annual growth rate for VaPI in July 2020 was recorded at -74.1 percent.  (Tables A and 1)

The upward trend in VaPI for manufacturing sector in July 2021 was contributed by the annual increases in 15 out of the 22 industry divisions. Among these, the top contributor was manufacture of coke and refined petroleum products with 4,096.1 percent annual growth rate. The remaining seven industry divisions were at a downward trend which were led by manufacture of tobacco products with -55.5 percent annual growth rate.  (Tables 1-A and 1)

Volume of Production Index likewise accelerated

The Volume of Production Index (VoPI), likewise, posted a three-digit annual rate of 537.9 percent in July 2021. This is higher than the 459.0 percent increase registered in the previous month. In July 2020, VoPI dropped at an annual rate of -72.8 percent.  (Tables A and 2)

Expansion in VoPI for manufacturing sector in July 2021 was observed in 14 out of 22 industry divisions. The fastest growth rate was reported in manufacture of coke and refined petroleum products at 3,525.6 percent.  The remaining eight industry divisions recorded decreases, with manufacture of tobacco products registering the fastest annual decline of -55.8 percent.  (Tables 1-B and 2)

NET SALES

Value of Net Sales Index decreased at a slower rate

The Value of Net Sales Index (VaNSI) recorded a year-on-year decrement of -0.6 percent in July 2021, from a positive annual  growth rate of 13.1 percent in the previous month. The annual rate in July 2021 was the first negative growth rate since March 2021. In July 2020, VaNSI also dropped at an annual rate of -16.1 percent.  (Tables A and 3)

The drop in VaNSI was brought about by the contractions in the indices of 13 industry divisions. Among these, the top contributor was manufacture of wearing apparel with an annual decline of -26.2 percent. Meanwhile, among industry divisions that showed increases in July 2021, the fastest growth was recorded in manufacture of furniture at 376.9 percent.  (Tables 2-A and 3)

Volume of Net Sales Index sustained a positive growth

The Volume of Net Sales Index (VoNSI) recorded a year-on-year increase of 1.0 percent in July 2021. This annual rate was slower than the 16.0 percent increase recorded in the previous month. In July 2020, the annual growth rate for VoNSI declined by -11.9 percent.  (Tables A and 4)

Of the 22 industry divisions, nine reported positive growths, led by manufacture of furniture which had an annual increment of 475.1percent. In contrast, 13 industry divisions exhibited decreases during the period, with manufacture of wearing apparel recording the highest decrease at -26.8 percent.  (Tables 2-B and 4)

CAPACITY UTILIZATION

Average capacity utilization rate for manufacturing slightly decreased

Based on responding establishments, the average capacity utilization rate for the manufacturing sector in July 2021 dropped to 66.7 percent from 67.7 percent in the previous month.

Nineteen (19) of the 22 industry divisions had more than 50 percent average capacity utilization rate which was led by manufacture of other non-metallic mineral products (81.1%), manufacture of tobacco products (78.3%), and manufacture of furniture (74.1%).  (Table 6)

More than one-fourth of the responding establishments operated at full capacity

The proportion of establishments that operated at full capacity (90% to 100%) was 26.9 percent of the total number of responding establishments. Meanwhile, 34.2 percent operated at 70 to 89 percent capacity, while 38.9 percent operated below 70 percent capacity.  (Table B)

TABLE 1-B.   Year-on-Year Growth Rate (%) of Volume of Production Index
by Industry Division: June 2021^r and July 2021^p
(2018 = 100)

 

TABLE 2-A.   Year-on-Year Growth Rate (%) of Value of Net Sales Index
by Industry Division: June 2021^r and July 2021^p
(2018 = 100)

 

TABLE 2-B.   Year-on-Year Growth Rate (%) of Volume of Net Sales Index
by Industry Division: June 2021^r and July 2021^p
(2018 = 100)

 

 

 

DENNIS S. MAPA, Ph. D.
Undersecretary
National Statistician and Civil Registrar General

 

 

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