A. Year-on-year Growth for July 2023

1. Value of Production Index (VaPI)

The VaPI for manufacturing continued to increase at an annual rate of 5.7 percent in July 2023. This was faster compared with its annual growth of 4.2 percent in the previous month. In July 2022, VaPI recorded a double-digit annual increment of 12.1 percent.  (Figure 2, Tables A and 1)

The expansion in the annual growth of the VaPI in July 2023 was mainly attributed by the higher annual increase in the index of manufacture of beverages industry division with 22.6 percent annual increment in July 2023 from an annual drop of -2.7 percent in the previous month. The manufacture of beverages contributed  38.3 percent to the annual uptrend of VaPI for the manufacturing section in July 2023. Out of the 22 industry divisions for the manufacturing section, manufacture of beverages was the fourth industry division with the highest weight^[1] in the computation of VaPI.
 

Other main contributors to the higher year-on-year growth of VaPI in July 2023 were manufacture of coke and refined petroleum products with 26.6 percent annual increase during the period from 7.0 percent in the previous month, and manufacture of food products with an annual rate of 3.1 percent in July 2023 from an annual decline of -0.3 percent in the previous month.

Of the remaining 19 industry divisions, seven exhibited annual upturns during the period. Meanwhile, 12 industry divisions posted annual declines in July 2023. The manufacture of furniture posted the fastest annual drop of -25.7 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 July 2023 were the following:

a. Manufacture of transport equipment;  
b. Manufacture of coke and refined petroleum products; and  
c. Manufacture of beverages.

The VaPI for manufacture of food products registered an annual increment of 3.1 percent during the month after exhibiting an annual decline of -0.3 percent in June 2023. In July 2022, VaPI posted a double-digit annual growth of 19.3 percent. (Figure 3, and Tables 1 and 1a)

The increase in the year-on-year growth of the VaPI for manufacture of food products in July 2023 was primarily driven by the annual increase in the manufacture of other food products industry group at 0.7 percent during the period from a decline of -4.9 percent in the previous month.

Other primary contributors to the year-on-year upturn of VaPI for manufacture of food products were the slower annual drops observed in the manufacture of dairy products at -5.3 percent during the month from -10.2 percent in June 2023, and manufacture of vegetable and animal oils and fats at -34.7 percent in July 2023 from -39.4 percent in the previous month. (Table 1a)

2. Volume of Production Index (VoPI)

The VoPI for manufacturing registered a year-on-year increment of 5.7 percent in July 2023, which was faster than the annual growth rate of 3.4 percent in the previous month. In July 2022, VoPI recorded an annual increase of 3.6 percent. (Figure 2, and Tables A and 2)

The higher annual growth of the VoPI in July 2023 was mainly brought about by the annual increases in the same top three industry divisions that contributed to the higher annual rate of VaPI during the period. These were the following:

1.     Manufacture of beverages, 12.6 percent from -11.4 percent annual decrease in the past month;

2.     Manufacture of coke and refined petroleum products, 36.2 percent from 15.9 percent in the previous month;

    c. Manufacture of food products, 1.2 percent from -3.1 percent annual decrement in June 2023.

Of the remaining 19 industry divisions, six registered year-on-year increases in   July 2023. In contrast, 13 industry divisions posted annual declines during the period. The highest annual drop was observed in manufacture of furniture at -27.7 percent. (Tables D and 2)

The top three industry divisions contributing to the overall year-on-year growth of VoPI for manufacturing in July 2023 were the following:

a. Manufacture of coke and refined petroleum products;  
b. Manufacture of transport equipment; and  
c. Manufacture of beverages.

The VoPI for manufacture of food products recorded an annual increase of 1.2 percent in July 2023 from its previous month’s annual decline of -3.1 percent. In July 2022, VoPI posted an annual increase of 7.8 percent. (Figure 3, and Tables 2 and 2a)

The annual rate of VoPI for manufacture of food products in July 2023 was mainly caused by the slower annual decrement observed in the manufacture of other food products industry group at -4.5 percent during the month from a double-digit annual decline of -11.0 percent in the previous month. The manufacture of other food products industry group includes bakery products, sugar, and condiments, among others.

Other main drivers to the annual increase of VoPI for manufacture of food products were the slower annual declines in the manufacture of dairy products at -7.7 percent during the month from -13.6 percent in June 2023, and manufacture of vegetable and animal oils and fats at -27.2 percent in July 2023 from -31.2 percent in the previous month. (Table 2a)

3. Value of Net Sales Index (VaNSI)

The VaNSI for manufacturing recorded a slower annual decrease in July 2023 at -2.1 percent compared with its annual drop of -3.5 percent in the previous month. In July 2022, VaNSI recorded a double-digit annual increase of 21.9 percent. (Figure 5, and Tables A and 3).

The slower year-on-year decline of VaNSI during the month was primarily brought about by the annual increment in the manufacture of beverages industry division at 18.9 percent in July 2023 from an annual decrease of -0.3 percent in June 2023. The manufacture of beverages contributed 41.3 percent to the trend of VaNSI for the manufacturing section in July 2023.

Other main contributors to the slower annual decline of VaNSI in July 2023 were manufacture of food products with a faster annual increase of 9.5 percent during the period from 7.7 percent in the previous month, and manufacture of fabricated metal products, except machinery and equipment with an annual increment of 6.0 percent in July 2023 from an annual decline of -8.4 percent in the previous month.

Furthermore, four out of the 19 remaining industry divisions posted annual increases, while 15 exhibited annual downturns in their indices during the period. The highest year-on-year decrement was recorded in manufacture of furniture at -27.4 percent during the period. (Tables E and 3)

The top three industry divisions contributing to the overall year-on-year growth of VaNSI for manufacturing in July 2023 were the following:

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

The VaNSI for manufacture of food products registered an annual increment of 9.5 percent in July 2023. This was faster compared with its annual growth rates in June 2023 at 7.7 percent and in July 2022 at 6.4 percent. (Figure 6, and Tables 3 and 3a)

The higher annual growth of VaNSI for manufacture of food products in July 2023 was primarily driven by the annual increase in the manufacture of dairy products industry group at 4.6 percent during the month from -1.9 percent annual drop in the previous month. Other primary contributors to the higher year-on-year upturn of VaNSI for manufacture of food products were manufacture of vegetable and animal oils and fats with a slower annual decrease of -33.3 percent in July 2023 from -43.2 percent in the previous month, and processing and preserving of fruits and vegetables with an annual increment of 2.9 percent in July 2023 from an annual decline of -5.8 percent in the previous month. (Table 3a)

4. Volume of Net Sales Index (VoNSI)

The VoNSI for manufacturing registered a slower year-on-year decrement in July 2023 at -2.1 percent relative to its annual decrease of -4.2 percent in June 2023. In July 2022, VoNSI recorded a double-digit annual increase of 12.7 percent. (Figure 5, and Tables A and 4)  
                
The slower decrements of VoNSI in July 2023 was mainly brought about by the annual increases in the same top three industry divisions that contributed to the slower annual decrease of VaNSI during the period. These were the following:

a. Manufacture of beverages, 9.1 percent from -9.3 percent annual decrease in the past month;  
b. Manufacture of food products, 7.5 percent from 4.6 percent in the previous month; and  
c. Manufacture of fabricated metal products, except machinery and equipment, 2.6 percent from -11.9 percent decline in June 2023.

Furthermore, three out of the 19 remaining industry divisions exhibited annual increases during the period, while the other 16 industry divisions posted annual declines. The highest year-on-year decrement was observed in manufacture of furniture at -29.3 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 July 2023 were the following:

1.      Manufacture of computer, electronic and optical products;

2.      Manufacture of coke and refined petroleum products; and

                    c. Manufacture of chemical and chemical products.

The VoNSI for manufacture of food products registered an annual increment of 7.5 percent in July 2023, faster than the annual growth rate of 4.6 percent in June 2023. In July 2022, VoNSI recorded an annual drop of -3.9 percent. (Figure 6, and Tables 4 and 4a)

The faster annual increase of VoNSI for manufacture of food products in July 2023 was primarily driven by the annual increase in the manufacture of dairy products industry group at 1.9 percent during the month from -5.6 percent annual drop in the previous month. Other primary contributors to the year-on-year upturn of VoNSI for manufacture of food products were the slower annual decline in the manufacture of vegetable and animal oils and fats at -25.6 percent in July 2023 from -35.5 percent in the previous month, and processing and preserving of fruits and vegetables with an annual increase of 5.6 percent in July 2023 from an annual decline of -5.2 percent in the previous month.  (Table 4a)

 B. Average Capacity Utilization Rate

Based on responding establishments, the average capacity utilization rate for manufacturing section in July 2023 was reported at 73.5 percent from 73.3 percent in the previous month.

All industry divisions reported capacity utilization rates of more than 50 percent during the month. The top three industry divisions in terms of reported capacity utilization rate were manufacture of computer, electronic, and optical products (81.0%), manufacture of rubber and plastic products (80.7%), and products manufacture of machinery and equipment except electrical (80.4%). (Table 6)

The proportion of establishments that operated at full capacity (90% to 100%) was 27.8 percent of the total number of responding establishments. Meanwhile, 37.3 percent operated at 70 to 89 percent capacity, and 34.9 percent operated below 70 percent capacity. (Table B)

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

 

 

 

 

 

 

 

 

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