A. Year-on-year Growth for September 2023

1. Value of Production Index (VaPI)

The VaPI for manufacturing continued to increase at an annual rate of 8.9 percent in September 2023. This was faster compared with its annual growth of 7.5 percent in the previous month. In September 2022, VaPI recorded a double-digit annual increment of 12.6 percent. (Figure 2, and Tables A and 1)

The expansion in the annual growth of the VaPI in September 2023 was mainly attributed by the higher annual increase in the manufacture of coke and refined petroleum products industry division at 66.9 percent in September 2023 from 39.2 percent annual increase in the previous month. The manufacture of coke and refined petroleum products contributed 49.7 percent to the annual uptrend of VaPI for the manufacturing section in September 2023. Out of the 22 industry divisions for the manufacturing section, manufacture of coke and refined petroleum products was the fifth industry division with the highest weight^[1] in the computation of VaPI.
 

Other main contributors to the higher year-on-year growth of VaPI in September 2023 were manufacture of computer, electronic and optical products with an annual growth rate of 2.9 percent during the period from an annual decline of 2.4 percent in the previous month, and manufacture of basic metals with higher annual increase of 9.4 percent in September 2023 from 1.3 percent in the previous month.

Of the remaining 19 industry divisions, seven exhibited annual upturns during the period. Meanwhile, 12 industry divisions posted annual declines in September 2023. The manufacture of wearing apparel posted the fastest annual drop of 36.4 percent during the period. (Tables C and 1)

The top three industry divisions contributing to the overall year-on-year growth of VaPI for manufacturing in September 2023 were the following:

a. Manufacture of coke and refined petroleum products;    
b. Manufacture of beverages; and    
c. Manufacture of transport equipment.

The VaPI for manufacture of food products registered an annual decline of     6.4 percent during the month after exhibiting an annual increment of 1.7 percent   in August 2023. In September 2022, VaPI for manufacture of food products posted a double-digit annual growth of 21.1 percent. (Figure 3, and Tables 1 and 1a)

The downturn in the year-on-year growth of the VaPI for manufacture of food products in September 2023 was primarily driven by the annual decline in the manufacture of dairy products industry group at 26.5 percent in September 2023 from 3.8 percent annual decrement in the previous month.

Other primary contributors to the year-on-year decrement of VaPI for manufacture of food products were the annual drop observed in manufacture of other food products at 8.2 percent during the month from a 1.9 percent annual growth in the previous month, and processing and preserving of fruits and vegetables with 17.9 percent annual decline in September 2023 from an annual growth of 19.7 percent in the previous month. (Table 1a)

2. Volume of Production Index (VoPI)

The VoPI for manufacturing registered a year-on-year increment of 9.1 percent in September 2023, which was faster than the annual growth rate of 6.8 percent in the previous month. In September 2022, VoPI recorded an annual increase of 4.5 percent. (Figure 2, and Tables A and 2)

The higher annual growth of the VoPI in September 2023 was mainly brought about by the annual increases in the same top three industry divisions that contributed to the higher annual rate of VaPI during the period. These were the following:

1.     Manufacture of coke and refined petroleum products, 78.6 percent annual increase from 47.5 percent annual upturn in the previous month;

2.    Manufacture of computer, electronic and optical products, 2.9 percent annual increase from 5.1 percent annual decline in August 2023; and

3.     Manufacture of basic metals, 14.0 percent annual increment from 5.6 percent annual increase in August 2023.

Of the remaining 19 industry divisions, five registered year-on-year increases in September 2023. In contrast, 14 industry divisions posted annual declines during the period. The highest annual drop was observed in manufacture of wearing apparel at 35.8 percent. (Tables D and 2)

The top three industry divisions contributing to the overall year-on-year growth of VoPI for manufacturing in September 2023 were the following:

a. Manufacture of coke and refined petroleum products;    
b. Manufacture of transport equipment; and    
c. Manufacture of beverages.

The VoPI for manufacture of food products registered an annual drop of 8.3 percent in September 2023. This was faster compared with its annual decline of 1.0 percent in August 2023. However, VoPI for manufacture of food products recorded a double-digit annual increase of 10.9 percent in September 2022. (Figure 3, and Tables 2 and 2a)

The faster annual drop of VoPI for manufacture of food products in September 2023 was mainly caused by the double-digit annual decrement in the manufacture of dairy products industry group at 28.1 percent during the month from an annual decrease of 6.8 percent in the previous month.

Other main drivers to the faster annual decrease of VoPI for manufacture of food products were manufacture of other food products with a double-digit annual decline of 11.7 percent during the month from an annual drop of 3.0 percent in August 2023, and the annual decline registered in processing and preserving of fruits and vegetables at 20.5 percent in September 2023 from 15.8 percent annual growth in the previous month. (Table 2a)

3. Value of Net Sales Index (VaNSI)

The VaNSI for manufacturing recorded a slower annual decrease of 0.4 percent in September 2023 compared with its annual drop of 0.7 percent in the previous month. In September 2022, VaNSI recorded a double-digit annual increase of 22.8 percent. (Figure 5, and Tables A and 3).

The slower year-on-year decline of VaNSI during the month was primarily brought about by the double-digit annual increase in the manufacture of coke and refined petroleum products industry division at 17.7 percent in September 2023 from an annual drop of 1.9 percent in August 2023. The manufacture of coke and refined petroleum products contributed 53.1 percent to the trend of VaNSI for the manufacturing section in September 2023.

Other main contributors to the slower annual decline of VaNSI in September 2023 were manufacture of beverages with a higher annual increment of 19.3 percent in September 2023 from 13.8 percent growth in the previous month, and manufacture of food products with a slower annual decrease of 0.4 percent during the period from an annual drop of 1.7 percent in August 2023.

Furthermore, four out of the 19 remaining industry divisions posted annual increases, while 15 exhibited annual downturns in their indices during the period. The highest year-on-year decrement was recorded in manufacture of wearing apparel at 33.3 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 September 2023 were the following:

a. Manufacture of beverages;    
b. Manufacture coke and refined petroleum products; and    
c. Manufacture of other non-metallic mineral products.

The VaNSI for manufacture of food products registered an annual drop of 0.4 percent in September 2023. This was slower compared with its annual decline in August 2023 at 1.7 percent. In September 2022, VaNSI for manufacture of food products recorded a double-digit annual increase of 10.8 percent. (Figure 6, and Tables 3 and 3a)

The slower year-on-year decline of VaNSI for manufacture of food products in September 2023 was primarily brought about by the slower annual decrement recorded in the manufacture of vegetable and animal oils and fats industry group at 8.0 percent in September 2023 from an annual decline of 38.2 percent in August 2023.

Other primary contributors to the slower year-on-year downturn of VaNSI for manufacture of food products were the annual increases in the manufacture of prepared animal feeds at 4.0 percent in September 2023 from 5.0 percent annual decrease in the previous month, and processing and preserving of fish, crustaceans and mollusks at 2.3 percent in September 2023 from 1.6 percent annual increase in the previous month. (Table 3a)

4. Volume of Net Sales Index (VoNSI)

The VoNSI for manufacturing registered a slower year-on-year decrement in September 2023 at 0.2 percent relative to its annual decrease of 1.3 percent in August 2023. In September 2022, VoNSI recorded a double-digit annual increase of 14.1 percent. (Figure 5, and Tables A and 4)
                  
The slower annual decrement of VoNSI in September 2023 was mainly brought about by the top three industry divisions that contributed to the slower annual decrease of VoNSI during the period. These were the following:

a. Manufacture of coke and refined petroleum products, 25.9 percent annual increase from 4.0 percent annual increment in the previous month;    
b. Manufacture of food products, 2.5 percent annual decrease from 4.3 percent annual drop in the past month; and    
c. Manufacture of beverages, 9.9 percent annual increase from 4.8 percent annual increment in August 2023.

Furthermore, six out of the 19 remaining industry divisions exhibited annual increases during the period, while the other 13 industry divisions posted annual declines. The highest year-on-year decrement was observed in manufacture of wearing apparel with an annual drop of 32.6 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 September 2023 were the following:

1.       Manufacture of coke and refined petroleum products;    
   b. Manufacture of beverages; and    
   c. Manufacture of basic metals.

The VoNSI for manufacture of food products registered an annual drop of     2.5 percent in September 2023. This was slower compared with its annual decline of 4.3 percent in August 2023. In September 2022, VoNSI for manufacture of food products recorded an annual increase of 1.4 percent. (Figure 6, and Tables 4 and 4a)

The slower annual decrease of VoNSI for manufacture of food products in    September 2023 was primarily driven by the slower annual decline in the manufacture of vegetable and animal oils and fats industry group at 3.6 percent during the month from 33.2 percent annual decrement in the previous month.

Other primary contributors to the slower year-on-year decrease of VoNSI for manufacture of food products were the annual increase observed in the manufacture of prepared animal feeds at 3.0 percent in September 2023 from an annual decrease of 6.5 percent in the previous month, and the slower annual downturn noted in processing and preserving of fish, crustaceans and mollusks at 2.2 percent in September 2023 from an annual decline of 8.0 percent in the previous month. (Table 4a)

B. Average Capacity Utilization Rate

Based on responding establishments, the average capacity utilization rate for the manufacturing section in September 2023 was reported at 74.3 percent from 74.0 percent in the previous month.

All industry divisions reported capacity utilization rates of more than 50.0 percent during the month. The top three industry divisions in terms of reported capacity utilization rate were manufacture of machinery and equipment except electrical (81.0%), manufacture of rubber and plastic products (80.1%), and manufacture of computer, electronic and optical products (79.4%). (Table 6)

The proportion of establishments that operated at full capacity (90% to 100%) was 25.0 percent of the total number of responding establishments. Meanwhile, 40.0 percent operated at 70 to 89 percent capacity, and 35.0 percent operated below 70 percent capacity. (Table B)

CLAIRE DENNIS S. MAPA, PhD    
Undersecretary    
National Statistician and Civil Registrar General

 

 

 

 

 

 

 

 

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