Values of production and net sales for total manufacturing increased in August 1999 by 20.6 percent and 1.4 percent, respectively compared to a year ago according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI).

Transport equipment, petroleum products and miscellaneous manufactures posted increases in both production and sales. Increase in production of petroleum products was triggered by continued rising of oil prices. On the other hand, food manufacturing, beverage, tobacco, textile, wearing apparel, wood & wood products, paper & paper products and basic metals registered decreases in both production and sales. Existing capacity for these sectors continued to operate at lower levels.

 
Value of Production

In August 1999, the value of production index (VaPI) of 557.6 increased by 20.6 percent from 462.5 in August 1998. Year-on-year increases were observed in 6 out of 16 major sectors (See Annex 1A). Electrical machinery posted the highest year-on-year VaPI increase of 61.1 percent. This can be attributed to the hefty increase of 64.7 percent in the production of microcircuits. Other sectors that posted increases were transport equipment (30.9%), petroleum products (5.6%), rubber products (6.1%), furniture & fixtures (2.2%) and miscellaneous manufactures (1.5%). On the other hand, basic metals continued to decline since the fourth quarter of 1998. In August 1999, it posted the biggest decrease of 40.3 percent. Other sectors that posted double-digit decreases were: wood & wood products (-30.2%), textile (-19.1%), chemicals (-10.0%), wearing apparel (-11.6%), non-metallic mineral products (-17.5%) and beverage (-11.5%).

 
Volume of Production

The volume of production index (VoPI) increased by 14.3 percent to 156.5 from 136.9 last year. Three out of 16 sectors posted year-on-year increases led by electrical machinery, which increased by 67.4 percent (See Annex 1B). Other sectors that contributed to the increase of the overall VoPI were transport equipment (22.0%) and other manufacturing industries (3.8%).

 
Value of Net Sales

The value of net sales for August 1999 increased by 1.4 percent compared to last year. Five out of 16 sectors posted increases led by petroleum products which increased by 15.6 percent (See Annex 2A). Other sectors that recorded increases were non-metallic mineral products (80.7%), chemicals (16.6%), transport equipment (29.4%) and miscellaneous manufactures (61.0%). On the other hand, basic metals posted the biggest decline of 35.6 percent. Other sectors that posted double-digit decreases were textile (-22.6%), wood & wood products (-16.3%), rubber products (-16.4%)and tobacco (-17.4%).

 
Volume of Net Sales

The volume of net sales for August 1999 posted a decrease of 4.8 percent over last year. Decreases were observed in twelve sectors led by basic metals, which declined by 28.2 percent (See Annex 2B). The other sectors with double-digit decreases were textile (-25.9%), paper & paper products (-27.8%), wood & wood products (-14.9%), beverages (-23.6%), rubber products (-29.0%) and tobacco (-15.6%).

 
Capacity Utilization

Responding establishments operating below 70% capacity were 45.7 percent in August 1999 compared to 40.3 percent a year ago. About 13.1 percent operated at full capacity (90%-100%) compared to 16.6 percent in August 1998.

The following sectors that had decreased use of existing capacity in August 1999 were beverage, tobacco, textile, wood & wood products, paper & paper products, chemicals, rubber products, non-metallic mineral products, basic metals and electrical machinery. On the other hand, only miscellaneous manufactures showed indications of increasing capacity utilization. Capacity utilization is defined as the ratio of output to the maximum rated capacity of the plant.

 
Response Rate

The results are based on the responses of 440 establishments, which comprise 79.6 percent of the total samples in the survey.

Source: National Statistics Office
Manila, Philippines