A. Year-on-year Growth for March 2023

1. Value of Production Index (VaPI)

The VaPI for manufacturing continued to increase by 4.9 percent in March 2023, slower than its annual growth of 9.0 percent in the previous month. In March 2022, the VaPI accelerated annually with a three-digit growth rate of 370.3 percent.  (Figure 2, Tables A and 1)

The slower annual growth of the VaPI in March 2023 was mainly contributed by the slower annual increase in the index of manufacture of beverages industry division with 11.1 percent annual increment in March 2023 from 27.2 percent in the previous month. The manufacture of beverages contributed 24.1 percent to the downtrend of VaPI for the manufacturing section in March 2023. Out of the 22 industry divisions for the manufacturing section, manufacture of beverages was the fourth industry division with the highest weight  in the computation of VaPI.

Other main contributors to the slower year-on-year growth of VaPI in March 2023 were manufacture of chemical and chemical products registering a faster annual decline of -25.5 percent during the period from -5.7 percent annual drop in the previous month, and manufacture of basic metals, which had a slower annual increment of 14.6 percent during the period from 27.2 percent annual increase in the previous month.

Of the remaining 19 industry divisions, 11 exhibited annual decrements during the period. The highest negative annual growth rate was led by manufacture of wearing apparel posting an annual drop of -38.0 percent.

In contrast, there were eight industry divisions that recorded annual increments in March 2023. The highest annual upturn was led by manufacture of transport equipment with 22.1 percent year-on-year increase.  (Tables C and 1)

In March 2023, the VaPI for manufacture of food products registered an annual increment of 5.6 percent. This was slower compared with its February 2023 annual growth rate of 7.6 percent and with its March 2022 annual increase of 8.4 percent.  (Figure 3, and Tables 1 and 1a)

The slower increase in the annual growth of the VaPI for manufacture of food products in March 2023 was primarily driven by the slower annual increase in the manufacture of dairy products industry group with an annual increment of 5.9 percent from 23.4 percent in the previous month. Other primary contributors to the slower year-on-year upturn of VaPI for manufacture of food products were manufacture of other food products with an annual decline of -1.0 percent during the month from an annual increase of 3.1 percent in February 2023, and processing and preserving of meat with a lower annual increase of 8.4 percent in March 2023 from 13.8 percent in the previous month. The manufacture of other food products includes bakery products, sugar, condiments, among others.  (Tables 1 and 1a)

2. Volume of Production Index (VoPI)

The VoPI for manufacturing registered a year-on-year increment of 2.2 percent in March 2023, but slower than the February 2023 annual growth of 5.2 percent. In March 2022, VoPI recorded faster annual acceleration of 346.2 percent.  (Figure 3, Tables A and 2)

The slower annual growth of VoPI in March 2023 was mainly brought about by the lower annual rates in the same top three industry divisions that contributed to the slower growth of VaPI during the period. These were the following:

a. Manufacture of beverages, 4.9 percent from 20.9 percent in the previous month;
b. Manufacture of chemical and chemical products, -25.5 percent from -7.8 percent in the past month; and
c. Manufacture of basic metals, 18.6 percent from 28.1 percent in February 2023.

Like VaPI, 11 out of the remaining 19 industry divisions posted negative annual growth rates in March 2023. The highest annual decline was led by manufacture of wearing apparel registering an annual downturn of -40.2 percent.

On the other hand, eight industry divisions posted year-on-year increases during the period. The highest annual upturn was led by manufacture of transport equipment recording an annual increment of 25.3 percent.  (Tables D and 2)

The VoPI for manufacture of food products registered an annual increment of 0.4 percent in March 2023. This was slower compared with its annual growth rates in February 2023 at 1.4 percent and March 2022 at 0.7 percent.  (Figure 3, and Tables 2 and 2a)

The slower increase in the annual growth of VoPI for manufacture of food products in March 2023 was primarily contributed by the annual decline in manufacture of dairy products industry group with -0.5 percent from 15.3 percent annual increase in the previous month. Other primary contributors to the slowdown in the year-on-year growth of VaPI for manufacture of food products were manufacture of other food products exhibiting faster annual decline of -8.4 percent during the period from -4.9 percent in February 2023; and processing and preserving of meat posting lower annual increment of 5.4 percent in March 2023 from 9.6 percent in the previous month.  (Tables 2 and 2a)

3. Value of Net Sales Index (VaNSI)

The VaNSI for manufacturing exhibited an annual decline of -0.9 percent in March 2023 after posting an annual increment of 6.9 percent in the previous month. In March 2022, VaNSI recorded a double-digit annual increase of 26.0 percent.  (Figure 4, Tables A and 3)

The annual drop of VaNSI in March 2023 was mainly brought about by the annual decline in the manufacture of coke and refined petroleum products industry division with -6.2 percent after registering an annual upturn of 30.9 percent in February 2023. The manufacture of coke and refined petroleum products contributed 35.5 percent to the downtrend of VaNSI of the manufacturing section in March 2023.

Other main contributors to the annual downturn of VaNSI in March 2023 were manufacture of transport equipment with an annual growth of 3.2 percent during the period from a double-digit annual increment of 24.5 percent in the previous month, and manufacture of beverages with a lower annual upturn of 6.8 percent in March 2023 from 16.7 percent in the previous month.

Moreover, there were 12 out of the remaining 19 industry divisions that registered year-on-year declines in March 2023. The highest negative growth rate was led by manufacture of wearing apparel with an annual rate of -33.0 percent.

On the contrary, seven industry divisions posted positive annual growth rates during the period. The highest annual increase was led by other manufacturing and repair and installation of machinery and equipment registering an annual upturn of 22.9 percent.  (Tables E and 3)

The VaNSI for manufacture of food products registered an annual increment of 8.9 percent in March 2023. This was higher compared with the February 2023 annual growth rate of 7.4 percent and with the March 2022 annual increase of 6.2 percent.  (Figure 5, and Tables 3 and 3a)

The increment in the annual growth of VaNSI for manufacture of food products in March 2023 was mainly contributed by the slower annual decline in the manufacture of vegetable and animal oils and fats industry group with annual decrement of -22.3 percent in March 2023 from -35.0 percent in the previous month. Other primary contributors to the year-on-year uptrend of VaNSI for manufacture of food products were the slower annual decline noted in processing and preserving of fruits and vegetables with an annual decrease of -4.1 percent in March 2023 from -15.9 percent in the previous month, and manufacture of prepared animal feeds, which recorded higher annual growth rate of 16.5 percent during the period from 12.1 percent in February 2023.  (Table 3a)

4. Volume of Net Sales Index (VoNSI)

The VoNSI for manufacturing declined at annual rate of -3.4 percent in March 2023 after recording an annual upturn of 3.2 percent in the previous month. In March 2022, VoNSI posted an annual increase of 19.6 percent. (Figure 4, and Tables A and 4)
              
The year-on-year decline of VoNSI in March 2023 was primarily brought about by the annual decrease in the index of manufacture of coke and refined petroleum products industry division at -5.8 percent in March 2023 from 25.7 percent annual rate in February 2023. The manufacture of coke and refined petroleum products contributed 33.3 percent to the downtrend of VoNSI of the manufacturing section in March 2023.

Other main contributors to the annual decline of VoNSI in March 2023 were the slower annual increases of manufacture of transport equipment with 5.9 percent during the period from a double-digit growth rate of 26.6 percent in the previous month, and manufacture of beverages with a lower annual upturn of 0.9 percent in March 2023 from 11.0 percent in the previous month.

Furthermore, 13 out of the 19 remaining industry divisions exhibited annual downturns during the period. The highest year-on-year negative growth rate was led by manufacture of wearing apparel posting an annual drop of -35.3 percent.

The VoNSI for manufacture of food products registered an annual increment of 3.5 percent in March 2023 from a slower annual growth of 1.2 percent in February 2023. In March 2022, VoNSI posted an annual downturn of -1.2 percent. (Figure 5, and Tables 4 and 4a)

The increase in the year-on-year growth of VoNSI for manufacture of food products in March 2023 was primarily due to the improvements in the indices of these three industry groups:

a) Manufacture of vegetable and animal oils and fats, -18.6 percent from -33.0 percent in February 2023;
b) Manufacture of prepared animal feeds, 4.7 percent from -1.6 percent in the previous month; and
c) Processing and preserving of fruits and vegetables, -1.6 percent from -14.9 percent in the past month. (Table 4a)

B. Average Capacity Utilization Rate

Based on responding establishments, the average capacity utilization rate for manufacturing section in March 2023 was reported at 73.0 percent from 72.7 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 (82.0%), manufacture of transport equipment (81.8%), and manufacture of rubber and plastic products (77.6%). (Table 6)

The proportion of establishments that operated at full capacity (90% to 100%) was 21.7 percent of the total number of responding establishments. Meanwhile, 38.0 percent operated at 70 to 89 percent capacity, while 40.3 percent operated below 70 percent capacity.  (Table B)

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

 

 

 

 

 

 

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