r-revised

·  Value of Production maintains its two-digit growth in August 2008

Value of Production Index (VaPI) for the manufacturing industry continued to grow at a slower rate as it posted an increase of 12.7 percent in August 2008 compared with the year-ago figure, according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). Fourteen (14) of the 20 major sectors posted increments in production values, with two-digit growth registered by the following: petroleum products, tobacco products, food manufacturing, basic metals, rubber and plastic products, chemical products (excluding plastic products), electrical machinery, and footwear and wearing apparel. Refer to Tables 1-A and 7.

On a month-on-month basis, however, VaPI fell 1.7 percent in August 2008. This was due to the decline in production values observed in twelve (12) sectors led by the following: leather products, non-metallic mineral products, footwear and wearing apparel, publishing and printing, basic metals, and transport equipment. Refer to Tables 1-A and 7.

·  Volume of Production continues its uptrend in August 2008

Volume of Production Index (VoPI) recorded a year-on-year growth of 6.5 percent in August 2008. Two-digits increments were reported by eight (8) major sectors led by tobacco products, food manufacturing,and electrical machinery. Refer to Tables 1-B and 8.

VoPI, on a month-on-month basis, dropped 1.5 percent in August 2008. This was mainly due to the two-digit reduction in factory output reported by the following major sectors: leather products, non-metallic mineral products, footwear and wearing apparel, publishing and printing, transport equipment and basic metals. Refer to Tables 1-B and 8.

·  Value of Net Sales sustains growth in August 2008

On a year-on-year basis, Value of Net Sales Index (VaNSI) likewise continued to gain at a slower rate of 8.7 percent in August 2008. This may be attributed to the sales performance of 12 major sectors, with two-digit growth observed in the following: petroleum products, leather products, basic metals, chemical products (excluding plastic products), non-metallic mineral products, and rubber and plastic products. Refer to Tables 2-A and 9.

On a monthly comparison, VaNSI went down by 6.0 percent in August 2008. The decreases were exhibited by 14 major sectors, led by the following: non-metallic mineral products, basic metals, footwear and wearing apparel, furniture and fixtures, and transport equipment. Refer to Tables 2-A and 9.

·  Volume of Net Sales also posts positive growth

Volume of Net Sales Index (VoNSI) likewise posted a year-on-year increase of 3.0 percent in August 2008. Two (2) of the nine (9) major sectors were significant contributors of growth, namely: leather products, and chemical products (excluding plastic products). Refer to Tables 2-B and 10.

VoNSI, on a monthly basis, fell 5.8 percent in August 2008. Fifteen (15) major sectors pulled down the sales volume, with two-digit decreases observed in the following: non-metallic mineral products, basic metals, footwear and wearing apparel, furniture and fixtures, transport equipment, and miscellaneous manufactures. Refer to Tables 2-B and 10.

·  Capacity Utilization

Average capacity utilization in August 2008 for total manufacturing was estimated at 81.3 percent. Ten (10) major sectors that registered capacity utilization rates of 80% and more were the following: basic metals, petroleum products, food manufacturing, leather products, paper and paper products, miscellaneous manufactures, chemical products (excluding plastic products), electrical machinery, rubber and plastic products, and footwear and wearing apparel. Refer to Table 6.

The proportion of establishments that operated at full capacity (90% to 100%) was 10.6 percent in August 2008. More than half or 59.0 percent of the establishments operated at 70% to 89% capacity while 30.4 percent of the establishments operated below 70% capacity.

·  Response Rates

The response rates for the August 2008 MISSI and PPS are 91.4 percent and 98.1 percent, respectively. Refer to Tables 12 and 13.

                                                     r-revised

·  Technical Notes

Only the 2000 based series will be continued beginning the August 2008 issue.

Starting with the February 2008 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 Chemicals 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 the February issue, the VaPI, VoPI, VaNSI, VoNSI and the revised PPI for Total Manufacturing for all months of 2008 are computed based on the revised industry disaggregation.

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 sector in the 2000-based series.

Sectors are ranked according to their contribution to the overall 2000-based August 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 sector in the 2000-based series

Sectors are ranked according to their contribution to the overall 2000-based August 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.

Note:

* - new sector in the 2000-based series

Sectors are ranked according to their contribution to the overall 2000-based August 2008 growth rate.

Year-on-year growth rates are computed by dividing the current month value of net sales by previous year same month value of net sales less 1.

Month-on-month growth rates are computed by dividing the current month value of net sales by previous month value of net sales less 1.

Note:

*  -   new sector in the 2000-based series

Sectors are ranked according to their contribution to the overall 2000-based August 2008 growth rate.

Year-on-year growth rates are computed by dividing the current month volume of net sales by previous year same month volume of net sales less 1.

Month-on-month growth rates are computed by dividing the current month volume of net sales by previous month volume of net sales less 1.

Source:   National Statistics Office
                 Manila, Philippines