PRODUCTION

Value of Production showed an increasing trend

The Value of Production Index (VaPI) for manufacturing further grew in June 2021 with an annual rate of 439.6 percent, from its previous month’s three-digit annual increase of 248.1 percent. The year-on-year growth rate in June 2021 was the third positive growth since April 2019 and the highest annual growth in the 2018-based data series. In contrast, the annual growth rate for VaPI in June 2020 was recorded at -81.7 percent.  (Tables A and 1)

The expansion in VaPI for manufacturing sector in June 2021 was contributed by the increases in 19 of the 22 industry divisions that registered positive annual growth rates. Among these, the top contributor was manufacture of coke and refined petroleum products with 3,230.0 percent annual growth rate. On the other hand, the remaining three industry divisions were at a downward trend which was led by manufacture of tobacco products with -65.1 percent annual growth rate.  (Tables 1-A and 1)

Volume of Production Index also expanded

The Volume of Production Index (VoPI), likewise, posted a three-digit annual rate of 453.1 percent in June 2021. This upturn was faster than the 263.2 percent increase registered in the previous month. In June 2020, VoPI dropped at an annual rate of -80.6 percent.  (Tables A and 2)

The growth noted in the volume of production for manufacturing sector in June 2021 was due to the improvements  in 19 out of 22 industry divisions. The fastest growth rate was registered in manufacture of coke and refined petroleum products at 2,932.2 percent.  On the contrary, the remaining three industry divisions recorded decreases with manufacture of tobacco products registering the fastest annual decline of -65.2 percent.  (Tables 1-B and 2)

NET SALES

Value of Net Sales Index likewise increased at a slower rate

The Value of Net Sales Index (VaNSI) recorded a slower annual increase of 14.7 percent in June 2021 compared with the 58.6 percent annual rate in the previous month. The annual rate in June 2021 was the fourth highest positive growth rate since March 2020. In June 2020, VaNSI dropped at an annual rate of -23.3 percent.  (Tables A and 3)

Of the 22 industry divisions, 18 exhibited positive growths, led by manufacture of fabricated metal products, except machinery and equipment that registered an annual increase of 179.3 percent. Meanwhile, four industry divisions showed downturns in June 2021 with manufacture of beverages recording the highest decline at -9.1 percent.  (Tables 2-A and 3)

Volume of Net Sales Index sustained double-digit increase

The Volume of Net Sales Index (VoNSI) recorded a year-on-year increment of 17.6 percent in June 2021. This annual rate was slower than the 65.5 percent increase posted in the previous month. In June 2020, VoNSI declined by -18.9 percent.  (Tables A and 4)

The increase in VoNSI was brought about by the positive growth rates of 19 industry divisions. Of these, manufacture of fabricated metal products, except machinery and equipment was the major contributing factor with 170.8 percent growth.  In contrast, the remaining three industry divisions exhibited decreases during the period, which were manufacture of beverages (-10.6%), manufacture of rubber and plastic products (-3.4%), and manufacture of tobacco products (-0.8%).  (Tables 2-B and 4)

CAPACITY UTILIZATION

Average capacity utilization rate for manufacturing increased

Based on responding establishments, the average capacity utilization rate for the manufacturing sector in June 2021 grew by 67.7 percent from 66.6 percent in the previous month.

Eighteen (18) of the 22 industry divisions had more than 50 percent average capacity utilization rate which was led by manufacture of furniture (83.0%), manufacture of other non-metallic mineral products (78.7%), and manufacture of tobacco products (76.2%).  (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 26.5 percent of the total number of responding establishments. Meanwhile, 33.4 percent operated at 70 to 89 percent capacity, while 40.1 percent operated below 70 percent capacity.  (Table B)

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

 

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

 

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

 

 

 

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

 

 

 

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