PRODUCTION
Value of Production Index further contracted
The Value of Production Index (VaPI) for Manufacturing sector reflected an annual decrement of -14.8 percent in July 2020, from a faster drop of -16.0 percent in the previous month. The contraction of VaPI in July 2020 was the fifth consecutive month that it exhibited annual decline. In July 2019, the annual decrease was observed at -7.9 percent. (Table A)
The major contributory to the slower annual decline of VaPI for manufacturing sector in July 2020 was the significant expansion observed in petroleum products which grew by 364.2 percent. Other industry groups with positive growth rates in July 2020 were wood and wood products (8.4%), and furniture and fixtures (2.3%). The slower drop in the indices of nine industry groups also tapered off the rate of decline in the index for the sector. (Tables 1-A and 1)
Volume of Production Index also dropped at a slower rate
The Volume of Production Index (VoPI) for manufacturing sector in July 2020 likewise contracted at a slower rate of -11.9 percent in July 2020 compared with the -12.5 percent decrease in June 2020. In July of the previous year, year-on-year decline was -8.5 percent. (Table A)
The slower downtrend in the VoPI for the sector was brought about by the increases in the indices of three industry groups led by petroleum products. Contributing further to the slower drop in July 2020 for the sector was the slower decreases in the indices of seven industry groups. (Tables 1-B and 2)
NET SALES
Value of Net Sales Index continued to decline
The Value of Net Sales Index (VaNSI) continued to drop at an annual rate of -13.5 percent in July 2020. This decline, however, was slower than the reported annual decrease of -16.7 percent in the previous month. The July 2020 figure was the fifth consecutive month that VaNSI had a negative growth, and the third straight month that it was declining at a slower rate. In July 2019, VaNSI dropped at a much slower rate of -2.4 percent. (Table A)
Of the 20 industry groups, positive growths were observed in four industry groups, namely, tobacco products (23.7%), food manufacturing (15.5%), wood and wood products (10.7%) and chemical products (8.2%) in July 2020.
The rest of the industry groups exhibited negative growths but majority (12) were on a slower rate of decline. (Tables 2-A and 3)
Volume of Net Sales Index likewise posted a slower negative rate
The Volume of Net Sales Index (VoNSI) also continued to exhibit a downtrend at an annual rate of -10.6 percent in July 2020, from a faster decline of -13.3 percent in the previous month. In July 2019, VoNSI dropped by -3.1 percent. (Table A)
Contributing to the slower decline in VoNSI for manufacturing sector in the period were the positive annual growths in four major industry groups led by tobacco products with 18.3 percent growth rate. The slower drop in the indices of 11 industry groups also triggered the narrower rate of decrease of VoNSI for the manufacturing 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 July 2020 slightly decreased to 75.4 percent from 75.8 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 (86.5%), followed by printing (83.3%), and textiles (82.2%). (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 17.3 percent of the total number of responding establishments with responses on capacity utilization. More than two-fifths (46.0%) operated at 70 to 89 percent capacity, and more than one-third (36.7%) operated below 70 percent capacity. (Table B)
(Sgd.) DENNIS S. MAPA, Ph. D.
Undersecretary
National Statistician and Civil Registrar General
by Industry Group
June and July 2020
(2000 = 100)
by Industry Group
June and July 2020
(2000 = 100)
by Industry Group
June and July 2020
(2000 = 100)
by Industry Group
June and July 2020
(2000 = 100)
