_{·  Value of Production still on its downtrend in January 2008}

_{Value of Production Index (VaPI) for the manufacturing industry continued its downtrend as it posted a year-on-year decline of 1.4 percent in January 2008, according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). This was brought about by the sluggish performance in production observed in the following major sectors: furniture and fixtures, food manufacturing, and transport equipment. Refer to Tables 1-A and 7 .}

_{Also, VaPI dropped by 11.0 percent on a month-on-month basis in January 2008. Production value of the eight (8) major sectors contracted, with two-digit decreases observed in the following: food manufacturing, petroleum products, and beverages Refer to Tables 1-A and 7.}

_{·  Volume of Production Index registers slight inxrease in January 2008}

_{However, Volume of Production Index (VoPI) on a yearly comparison grew by 0.5 percent in January 2008. The increase was mainly due to the expansion in factory output of the 12 major sectors, with the two-digit increases registered by the following: leather products, miscellaneous manufactures, tobacco products, wood and wood products , fabricated metal products, beverages, and machinery excluding electrical Refer to Tables 1-B and 8.}

_{VoPI, on a monthly basis fell by 11.1 percent in January 2008 due to the significant decreases observed in the following major sectors: food manufacturing, beverages and petroleum products. Refer to Tables 1-B and 8.}

_{·  Capacity Utilization}

_{Average capacity utilization in January 2008 for total manufacturing was estimated at 80.2 percent. Nine (9) major sectors that registered more than 80% capacity utilization rates were the following: basic metals, paper and paper products, leather products, petroleum products, food manufacturing, miscellaneous manufactures, electrical machinery, footwear and wearing apparel and chemical products (excluding plastic products). Refer to Table 6.}

_{The proportion of establishments that operated at full capacity (90% to 100%) was 10.1 percent in January 2008. More than half or 59.0 percent of the establishments operated at 70% to 89% capacity while 30.9 percent of the establishments operated below 70% capacity.}

_{·  Response Rate}

_{The response rates for the January 2008 MISSI and PPS are 85.9 percent and 92.2 percent, respectively. Refer to Tables 12 and 13.}

_{·  Technical Notes}

_{The 1994 based MISSI indices and the PPI will have the December 2007 data as the last of the series. Only the 2000 based series will be continued in 2008.}

_{Starting this issue, a revised industry disaggregation of the MISSI indices and PPI will be adopted to conform to the 1994 PSIC groupings. Rubber and Plastic Products is a new major sector, consisting of two subsectors, namely: Rubber Products and Plastic Products. Rubber Products was previously a major sector while Plastic Products was one of the sub-sectors of Chemical Products.}

_{With previously seven (7) subsectors, the major sector of Chemical Products has now six (6) subsectors, namely: Basic Chemical and Industrial Gases, Fertilizers, Paints, Drugs and Medicines, Cosmetics and Toilet Preparations, and Miscellaneous Chemicals.}

_{The major sector of Machinery except Electrical has been split into two subsectors, namely: Machinery and Equipment, n.e.c. and Office, Accounting and Computing Machinery.}

_{The corresponding weights of the above major sectors and sub-sectors have been recomputed to allow for the revised computation of the indices.}

_{Thus, beginning this issue, the VaPI, VoPI, and the revised PPI for Total Manufacturing for all months of 2007 and January 2008 are computed based on the revised industry disaggregation. However, the Value and Volume of Net Sales indices for January 2008 will be released in the next issue.}

_{Starting 2008, weights for the PPI and Capacity Utilization Rates are based from the results of the 2005 Annual Survey of Philippine Business and Industry for manufacturing establishments with average total employment of 20 and over.}

_{Data of non-responding sample establishments are estimated based on previous records and other available sources. Revisions to the preliminary estimates are done upon receipt of actual reports of late respondents.}

_{Notes: * - new sectors in the 2000-based series}

_{a/ - Less than 0.1 percent increase}

_{Sectors are ranked according to their contribution to the overall 2000-based January 2008 growth rate.}

_{Year-on-year growth rates are computed by dividing the current month index by previous year same month index less 1.}

_{Month-on-month growth rates are computed by dividing the current month index by previous month index less 1.}

_{Notes * - new sectors in the 2000-based series}

_{Sectors are ranked according to their contribution to the overall 2000-based January 2008 growth rate.}

_{Year-on-year growth rates are computed by dividing the current month index by previous year same month index less 1.}

_{Month-on-month growth rates are computed by dividing the current month index by previous month index less 1.}

_{Source:   National Statistics Office}

                 _{Manila, Philippines}