A. Year-on-year Growth for June 2023
1. Value of Production Index (VaPI)
The VaPI for manufacturing continued to increase by 3.9 percent annually in June 2023. This was slower than its annual growth of 9.9 percent in the previous month. In June 2022, the VaPI recorded an annual growth rate of 7.8 percent. (Figure 2, Tables A and 1)
The slower annual growth of the VaPI in June 2023 was mainly contributed by the annual drop in manufacture of food products industry division at -0.4 percent in June 2023 from 10.8 percent annual increase in the previous month. The manufacture of food products contributed 36.8 percent to the downtrend of VaPI for the manufacturing section in June 2023. Out of the 22 industry divisions for the manufacturing section, manufacture of food products was the industry division with the highest weight[1] in the computation of VaPI.
Other main contributors to the slower year-on-year growth of VaPI in June 2023 were the annual declines in the manufacture of fabricated metal products, except machinery and equipment at -33.4 percent from a 2.8 percent annual increase in the previous month, and manufacture of beverages with an annual drop of -2.7 percent in June 2023 from 10.6 percent annual growth in the previous month.
Of the remaining 19 industry divisions, 11 exhibited annual reductions in their indices during the period. Meanwhile, eight industry divisions registered annual increases during the month. The highest year-on-year growth during the period was exhibited by printing and reproduction of recorded media at 37.4 percent. (Tables C and 1)
The top three industry divisions contributing to the overall year-on-year growth of VaPI for manufacturing in June 2023 were the following:
a. Manufacture of transport equipment;
b. Manufacture of electrical equipment; and
c. Manufacture of coke and refined petroleum products.
The VaPI for manufacture of food products registered an annual decrement of -0.4 percent in June 2023 after exhibiting double-digit annual growth rates in May 2023 and in June 2022 at 10.8 percent and 13.9 percent, respectively. (Figure 3, and Tables 1 and 1a)
The downturn in the year-on-year growth of the VaPI for manufacture of food products in June 2023 was primarily driven by the annual decline of manufacture of dairy products at -9.8 percent in June 2023 from a 16.3 percent annual increment in the previous month.
Other primary contributors to the year-on-year decrement of VaPI for manufacture of food products were the annual drop in manufacture of other food products at -0.6 percent from 12.5 percent annual growth in the past month, and processing and preserving of fish, crustaceans and mollusks at -4.6 percent from 10.1 percent in May 2023. (Table 1a)
2. Volume of Production Index (VoPI)
The VoPI for manufacturing registered a year-on-year increment of 3.4 percent in June 2023. This was slower than the May 2023 annual growth of 7.7 percent. In June 2022, VoPI recorded an annual decrease of -0.04 percent. (Figure 2, and Tables A and 2)
The slower annual growth of the VoPI in June 2023 was mainly brought about by the annual declines in the same top three industry divisions that contributed to the slower growth of VaPI during the period. These were the following:
Manufacture of food products, -3.2 percent from 6.9 percent annual increment in the previous month.
Manufacture of fabricated metal products, except machinery and equipment, -36.4 percent from -2.9 percent in the past month;
c. Manufacture of beverages, -7.7 percent from 4.8 percent annual increase in June 2023.
Of the remaining 19 industry divisions, 10 exhibited annual deceleration in their indices during the period. In contrast, there were nine industry divisions that recorded annual increments in June 2023. The highest annual upturn was led by printing and reproduction of recorded media at 34.6 percent. (Tables D and 2)
The top three industry divisions contributing to the overall year-on-year growth of VoPI for manufacturing in June 2023 were the following:
a. Manufacture of transport equipment;
b. Manufacture of coke and refined petroleum products with; and
c. Manufacture of coke and refined petroleum products with 20.1 percent share.
The VoPI for manufacture of food products dropped at an annual rate of -3.2 percent in June 2023. In contrast, it recorded annual increments in May 2023 and June 2022 at 6.9 percent and 3.3 percent, respectively. (Figure 3, and Tables 2 and 2a)
The annual drop of VoPI for manufacture of food products in June 2023 was mainly due to the annual decrement observed in manufacture of dairy products industry group at -13.3 percent from a positive annual rate of 10.2 percent in the previous month. Other main drivers to the annual decrease of VoPI for manufacture of food products were the annual declines in the manufacture of other food products at -6.9 percent in June 2023 from 5.5 percent annual growth in May 2023, and the faster annual decline in the processing and preserving of fish, crustaceans and mollusks at -15.4 percent during the period from -1.4 percent in the previous month. (Table 2a)
3. Value of Net Sales Index (VaNSI)
The VaNSI for manufacturing exhibited an annual drop of -4.3 percent in June 2023 after posting an annual growth of 3.6 percent in the previous month. In June 2022, VaNSI recorded a double-digit annual increase of 21.6 percent. (Figure 5, and Tables A and 3).
The year-on-year decline of VaNSI in June 2023 was primarily brought about by the annual decrease in the manufacture of coke and refined petroleum products industry division at -22.2 percent in June 2023 from 2.9 percent annual rate in May 2023. The manufacture of coke and refined petroleum products contributed 24.8 percent to the downtrend of VaNSI of the manufacturing section in June 2023.
Other main contributors to the annual decline of VaNSI in June 2023 were the slower annual increases of manufacture of food products with 6.3 percent during the period from a double-digit growth rate of 12.8 percent in the previous month, and manufacture of transport equipment at 14.0 percent in June 2023 from 22.9 percent in the previous month.
Furthermore, 13 out of the 19 remaining industry divisions exhibited annual downturns in their indices during the period, while the other six industry divisions posted annual increases. The highest year-on-year increment was led by manufacture of basic pharmaceutical products and pharmaceutical preparations at 24.9 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 June 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 6.3 percent in June 2023. This was slower compared with its annual growth rates in May 2023 of 12.8 percent and in June 2022 of 8.8 percent. (Figure 6, and Tables 3 and 3a)
The slowdown in the annual growth of the VaNSI for manufacture of food products in June 2023 was primarily driven by the slower annual increase in the manufacture of other food products industry group at 12.9 percent from 17.8 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 slower year-on-year upturn of VaNSI for manufacture of food products were the slower annual increases of the manufacture of prepared animal feeds with 1.4 percent in June 2023 from 10.9 percent in the previous month, and manufacture of grain mill products, starches and starch products at 32.4 percent in June 2023 from 39.6 percent in the previous month. (Table 3a)
4. Volume of Net Sales Index (VoNSI)
The VoNSI for manufacturing registered an annual drop of -4.8 percent in June 2023 from its annual growth of 1.6 percent in May 2023. In June 2022, VoNSI posted a double-digit annual increase of 12.8 percent. (Figure 5, and Tables A and 4)
The annual drop of VoNSI in June 2023 was mainly brought about by the annual decline in the manufacture of coke and refined petroleum products industry division at -15.9 percent after registering an annual upturn of 7.4 percent in May 2023. The manufacture of coke and refined petroleum products contributed 26.5 percent to the downtrend of VoNSI of the manufacturing section in June 2023.
Other main contributors to the annual downturn of VoNSI in June 2023 were the lower annual upturns observed in the manufacture of food at 3.4 percent in June 2023 from 8.8 percent in the previous month, and manufacture of transport equipment at 18.1 percent during the period from 25.9 percent in the previous month.
Furthermore, 14 of the 19 remaining industry divisions exhibited annual downturns in their indices during the period. Meanwhile, five industry divisions posted annual increases in June 2023. The manufacture of basic pharmaceutical products and pharmaceutical preparations posted the fastest annual uptick of 25.3 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 June 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 VoNSI for manufacture of food products registered a slower annual increment of 3.4 percent in June 2023 from an annual growth of 8.8 percent in May 2023. However, In June 2022, VoNSI posted an annual drop of -1.3 percent. (Figure 6, and Tables 4 and 4a)
The slower increment in the annual growth of VoNSI for manufacture of food products in June 2023 was mainly contributed by the slower annual increase in the manufacture of other food products industry group at 5.7 percent from 10.4 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 year-on-year downtrend of VoNSI for manufacture of food products were the annual declines noted in manufacture of vegetable and animal oils and fats industry group at -36.5 percent in June 2023 from -26.8 percent in the previous month, and manufacture of prepared animal feeds at -3.6 percent in June 2023 from a positive annual growth rate of 3.0 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 June 2023 was reported at 73.2 percent from 73.4 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 machinery and equipment except electrical (81.5%), manufacture of transport equipment (80.8%), and manufacture of rubber and plastic products (80.2%). (Table 6)
The proportion of establishments that operated at full capacity (90% to 100%) was 26.5 percent of the total number of responding establishments. Meanwhile, 36.7 percent operated at 70 to 89 percent capacity, and 36.8 percent operated below 70 percent capacity. (Table B)
CLAIRE DENNIS S. MAPA, PhD
Undersecretary
National Statistician and Civil Registrar General
[1] Refer to Method of Computation in the Technical Notes
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