PRODUCTION

Value of Production at downward trend

The Value of Production Index (VaPI) for manufacturing continued to drop at an annual rate of -74.2 percent in March 2021. This decline was faster than the reported downturn in the previous month of -46.4 percent and in March 2020 of -25.1 percent.  The March 2021 annual growth rate was the fastest decline since September 2020.  (Tables A and 1)

Of the 22 industry divisions, VaPI dropped in five (5) industry divisions.  The highest annual rate of decline was reported in manufacture of coke and refined petroleum products at -97.3 percent. On the other hand,  17 industry divisions showed increases during the period with manufacture of fabricated metal products, except machinery and equipment recording the highest annual growth of 84.9 percent.  (Tables 1-A and 1)

Volume of Production Index also dropped further

The Volume of Production Index (VoPI) also remained at a downtrend with an annual rate of -73.4 percent in March 2021. This downturn was faster than the -43.3 percent decrease registered in the previous month. In March 2020, the annual rate of VoPI was recorded at -20.4 percent.  (Tables A and 2)

The drop in VoPI was brought about by the contractions in the indices of five (5) industry divisions. Among these, the top contributor was manufacture of coke and refined petroleum products with an annual rate of -97.4%. Meanwhile, among industry divisions that rose during the period, the fastest growth was recorded in manufacture of fabricated metal products, except machinery and equipment at 85.5 percent.  (Tables 1-B and 2)

NET SALES

Value of Net Sales Index rebounded

The Value of Net Sales Index (VaNSI) made a turnaround as it grew by 13.9 percent in March 2021, from its previous month’s annual drop of  -17.6 percent. The year-on-year growth rate in March 2021 was the first annual increase since June 2019.  (Tables A and 3)

Expansion in VaNSI for manufacturing sector in March 2021 were observed in 18 out of 22 industry divisions. The fastest growth was registered in manufacture of wood, bamboo, cane, rattan articles and related products at 79.9%.  On the other hand, four (4) industry divisions contracted which was led by manufacture of basic pharmaceutical products and pharmaceutical preparations at -20.6%.  (Tables 2-A and 3)

Volume of Net Sales Index also picked up

The Volume of Net Sales Index (VoNSI), likewise, expanded as it posted a year-on-year increase of 17.5 percent in March 2021, from a negative annual growth rate of -12.8 percent in the previous month. In March 2020, the annual decrease of VoNSI was recorded at -21.9 percent.  (Tables A and 4)

The increase in VoNSI was brought about by the positive growth rates of 18 industry divisions, 17 of which posted double-digit annual growth rates led by manufacture of wood, bamboo, cane, rattan articles and related products at 86.2%.  On the other hand, four (4) industry divisions recorded decrements with manufacture of basic pharmaceutical products and pharmaceutical preparations registering the fastest annual decline of -17.8 percent.  (Tables 2-B and 4)

CAPACITY UTILIZATION

Average capacity utilization rate for manufacturing slightly increased

Based on responding establishments, the average capacity utilization rate for the manufacturing sector in March 2021 slightly rose to 61.0 percent, from 60.4 percent in the previous month.

Seventeen (17) of the 22 industry divisions had at least 50 percent average capacity utilization rate, which was led by manufacture of furniture (80.0%), other manufacturing and repair and installation of machinery and equipment (73.5%), and manufacture of electrical equipment (72.5%).  (Table 6)

About one-fifth of responding establishments operated at full capacity

The proportion of establishments that operated at full capacity (90% to 100%) was about one-fifth (18.8%) of the total number of responding establishments. Meanwhile, 35.4 percent operated at 70 to 89 percent capacity, while 45.8 percent operated below 70 percent capacity.  (Table B)

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

 

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

 

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

 

 

 

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

 

 

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