PRODUCTION

Value of Production continued to accelerate

The Value of Production Index (VaPI) for manufacturing continued to accelerate at an annual rate of 249.5 percent in May 2021, from its previous month’s three-digit increase of 145.5 percent. The year-on-year growth rate in May 2021 was the second positive growth since April 2019 and the highest annual growth in the 2018-based data series. In May 2020, VaPI dropped at an annual rate of -74.4 percent.  (Tables A and 1)

The upward trend in VaPI for manufacturing sector in May 2021 was brought about by the sharp increases in most of the 18 industry divisions that registered positive annual growth rates. Among these, the top contributor was manufacture of coke and refined petroleum products with 1,472.7 percent annual growth. On the other hand, only four industry divisions contracted which was led by manufacture of tobacco products at -69.3 percent.  (Tables 1-A and 1)

Volume of Production Index further increased

The Volume of Production Index (VoPI), likewise, posted a three-digit annual rate of 265.0 percent in May 2021. This increment was faster than the 155.6 percent increase registered in the previous month. In contrast, the annual growth rate for VoPI in May 2020 was recorded at -73.2 percent.  (Tables A and 2)

The expansion in VoPI for manufacturing sector in May 2021 were observed in 18 out of the 22 industry divisions. The fastest growth was registered in manufacture of coke and refined petroleum products at 1,366.1 percent.  On the contrary, four industry divisions recorded decrements with manufacture of tobacco products registering the fastest annual decline of -68.7 percent.  (Tables 1-B and 2)

NET SALES

Value of Net Sales Index continued to gain at a slower pace

The Value of Net Sales Index (VaNSI) posted a slower annual increase of 55.6 percent in May 2021 compared with the three-digit growth rate of 184.2 percent in the previous month. The year-on-year growth rate in May 2021 was the third positive growth since March 2020. In May 2020, the annual decrease of VaNSI was recorded at -47.2 percent.  (Tables A and 3)

The increment in VaNSI was brought about by the positive growth rates of 20 industry divisions, eight of which posted three-digit annual growth rates, led by manufacture of wearing apparel with 208.3 percent. On the other hand, the remaining two industry divisions, namely, printing and reproduction of recorded media and manufacture of tobacco products recorded two-digit decrements of  -43.4 percent and -10.1 percent, respectively.  (Tables 2-A and 3)

Volume of Net Sales Index also grew at a slower rate

The Volume of Net Sales Index (VoNSI) recorded a year-on-year increment of 62.5 percent in May 2021. This annual rate is slower than the three-digit growth rate of 195.8 percent  in April 2021. In May 2020, VoNSI declined by -44.7 percent.  (Tables A and 4)

Of the 22 industry divisions, 19 exhibited positive growths, 10 of which recorded three-digit annual increases. The fastest growth rate was registered in manufacture of wearing apparel at 216.7 percent.  Meanwhile, only three industry divisions showed decreases during the period, which were printing and reproduction of recorded media (-43.4%), manufacture of tobacco products (-8.4%), and manufacture of beverages (-0.03%).  (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 May 2021 rose to 66.1 percent, from 64.0 percent in the previous month.

Eighteen (18) of the 22 industry divisions had at least 50 percent average capacity utilization rate which was led by manufacture of furniture (83.0%), manufacture of other non-metallic mineral products (79.6%), and manufacture of machinery and equipment except electrical (74.2%).  (Table 6)

One-fifth of the responding establishments operated at full capacity

The proportion of establishments that operated at full capacity (90% to 100%) was 20.8 percent of the total number of responding establishments. Meanwhile, 33.9 percent operated at 70 to 89 percent capacity, while 45.3 percent operated below 70 percent capacity.  (Table B)

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

 

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

 

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

 

 

 

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

 

 

 

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