Total Manufacturing	December 2009	November 2009
			Year-on-Year Growth
Production Index (2000=100)
Value(VaPI)	8.6	1.3r
Volume(VoPI)	11.0	5.0r
Net Sales Index (2000=100)
Value(VaNSI)	18.7	10.1r
Volume(VoNSI)	21.4	14.1r
Producer Price Index (2000=100)	-2.2r	-3.5r
AVERAGE CAPACITY UTILIZATION	82.7	82.5r

     r - revised

·  Value of Production maintains a positive growth in December 2009

Value of Production Index (VaPI) of the manufacturing industry continued to grow as it posted a year-on-year increase of 8.6 percent in December 2009, according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). Miscellaneous manufacturescontributed much to the increase with 121.6 percent growth, followed by other major sectors that registered two-digit growth in production value, namely: non-metallic mineral products, basic metal, petroleum products, transport equipment, electrical machinery, rubber and plastic products, machinery except electrical, wood and wood products, textiles andtobacco products. Refer to Tables 1-A and 1.

Likewise, VaPI recorded a month-on-month increase of 3.4 percent in December 2009. Notable increases were observed in wood and wood products and food manufacturing, with two-digit growths of 12.9 percent and 11.4 percent, respectively. Refer to Tables 1-A and 1.

·  Volume of Production registers two-digit growth

On a year-on-year basis, Volume of Production Index (VoPI) posted a two-digit increment of 11.0 percent in December 2009. Fifteen out of 20 major sectors exhibited increases in production output with miscellaneous manufactures contributing the largest increase of 156.5 percent, followed by other nine major sectors that posted two-digit increments, namely: electrical machinery, basic metals, transport equipment, non-metallic mineral products, machinery except electrical, rubber and plastic products, tobacco products, fabricated metal products and furniture and fixtures. Refer to Tables 1-B and 2.

On a monthly comparison, VoPI grew at a slower rate of 3.5 percent in December 2009. Two of the eight major sectors were significant contributors of growth, namely: wood and wood products and food manufacturing. Refer to Tables 1-B and 2.

 

·  Value of Net Sales accelerates further

Value of Net Sales Index (VaNSI) also accelerated as it posted a two-digit annual growth of 18.7 percent in December 2009. Twelve of the 14 major sectors strongly influenced the increase in sales, namely: miscellaneous manufactures, publishing and printing, basic metals, electrical machinery, wood and wood products, machinery except electrical, non-metallic mineral products, transport equipment, food manufacturing, petroleum products, fabricated metal products and rubber and plastic products. Refer to Tables 2-A and 3.

VaNSI sustained a month-on-month growth of 3.4 percent in December 2009. This was due to the increases by nine major sectors, offsetting the decreases reported by 11 major sectors.Refer to Tables 2-A and 3.

·  Volume of Net Sales also steps up in December 2009

On a yearly comparison, Volume of Net Sales Index (VoNSI) climbed by 21.4 percent in December 2009. The increases in sales output were exhibited by 14 major sectors, with two-digit increases noted in the following: miscellaneous manufactures, electrical machinery, basic metals, publishing and printing, furniture and fixtures, machinery except electrical, non-metallic mineral products, fabricated metal products, transport equipment, food manufacturing, wood and wood products, paper and paper productsand rubber and plastic products. Refer to Tables 2-B and 4.

VoNSI, on a month-on-month basis, continued to gain at a slower rate of 3.5 percent in December 2009. Eleven major sectors accounted for the significant growth in sales led bypublishing and printing, wood and wood products, petroleum products, furniture and fixtures and beverages. Refer to Tables 2-B and 4.

 

·  Capacity Utilization

Average capacity utilization in December 2009 for total manufacturing stood at 82.7 percent. Eleven (11) major sectors registered capacity utilization rates of 80% and more, namely: basic metals, electrical machinery, food manufacturing, machinery except electrical, paper and paper products, chemical products, miscellaneous manufactures, non-metallic mineral products, rubber and plastic products, petroleum products and leather products. Refer to Table 6.

The proportion of establishments that operated at full capacity (90% to 100%) was 11.3 percent in December 2009. About 65.8 percent of the establishments operated at 70% to 89% capacity while 22.9 percent of the establishments operated below 70% capacity.

Distribution of Key Manufacturing Establishments by Capacity Utilization  Total Manufacturing, December 2009 (In percent)
Capacity Utilization	Percent Share
Below 50 percent	3.2
50 percent - 59 percent	5.9
60 percent - 69 percent	13.8
70 percent - 79 percent	20.1
80 percent - 89 percent	45.7
90 percent - 100 percent	11.3

·  Response Rates

The response rates for the December 2009 MISSI and PPS are 88.9 percent and 96.8 percent, respectively. Refer to Tables 7 and 8

Response Rates for Total Manufacturing (In percent)
	December 2009	November 2009 (revised)
MISSI	88.9	92.7r
PPS	96.8r	98.1r

                       r-revised

·  Technical Notes

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

Starting with the February 2008 issue, a revised industry disaggregation of the MISSI indices and PPI will be adopted to conform with the amended 1994 PSIC groupings. Rubber and Plastic Products is a new major sector, consisting of two subsectors, namely: Rubber Productsand Plastic Products. Rubber Products was previously a major sector while Plastic Productswas 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.

Beginning the February 2008 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.

Also, beginning with the January 2009 data, weights of the major sectors and sub-sectors for the PPI and Capacity Utilization Rate have been computed utilizing the results of the 2006 Census of Philippine Business and Industry for Manufacturing Establishments for ATE 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. 

 

(Sgd.) CARMELITA N. ERICTA                                                                                                                            Administrator

 

Losers	Year-on-Year Growth (%)
	December 2009	November 2009 (revised)
Beverages	-28.0	-34.8
Footwear and Wearing Apparel	-19.4	-27.6
Food Manufacturing	-3.3	-9.5
Furniture and Fixtures	-27.3	-32.9
Paper and Paper Products	-7.9	-3.4
Leather Products	-19.6	-37.37
Fabricated Metal Products	-0.6	-13.0

 

 

Losers	Month-on-Month Growth (%)
	December 2009	November 2009 (revised)
Transport Equipment	-12.3	-1.5
Petroleum Products	-4.7	0.1
Tobacco Products	-22.5	-1.3
Publishing and Printing	-16.3	24.3
Miscellaneous Manufactures	-8.8	-7.7
Chemical Products	-2.3	3.5
Fabricated Metal Products	-7.6	-3.7
Paper and Paper Products	-3.4	14.5
Textiles	-3.3	0.5
Leather Products	-15.2	2.8
Machinery Except Electrical	-0.1	-0.5

Notes:

* - new sector in the 2000-based series

Sectors are ranked according to their contribution to the overall 2000-based December 2009 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.

 

Losers	Year-on-Year Growth (%)
	December 2009	November 2009 (revised)
Beverages	-28.8	-35.5
Footwear and Wearing Apparel	-24.2	-33.7
Food Manufacturing	-0.7	-6.0
Chemical Products	-1.5	-1.6
Leather Products	-19.6	-37.3

 

Notes

* - new sector in the 2000-based series

a/ - Less than 0.1 percent increase

Sectors are ranked according to their contribution to the overall 2000-based December 2009 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.

 

Losers	Year-on-Year Growth (%)
	December 2009	November 2009 (revised)
Beverages	-24.5	-19.6
Footwear and Wearing Apparel	-12.6	-16.9
Chemical Products	-3.6	-1.5
Textiles	-15.1	-13.9
Tobacco Products	-10.7	44.2
Furniture and Fixtures	-8.9	-31.2

 

 

Losers	Month-on-Month Growth (%)
	December 2009	November 2009 (revised)
Tobacco Products	-25.7	14.3
Chemical Products	-4.7	1.1
Transport Equipment	-7.1	-1.4
Machinery Except Electrical	-2.7	18.3
Miscellaneous Manufactures	-9.4	-12.7
Textiles	-8.7	-7.0
Non-Metallic Mineral Products	-1.4	a/
Leather Products	-13.1	5.1
Rubber and Plastic Products*	-2.5	-7.5
Paper and Paper Products	-1.4	0.2
Fabricated Metal Products	-0.5	-0.8

Note:

* - new sector in the 2000-based series

a/ - less than 0.1 percent increase

Sectors are ranked according to their contribution to the overall 2000-based December 2009 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.

 

 

Losers	Month-on-Month Growth (%)
	December 2009	November 2009 (revised)
Tobacco Products	-25.7	14.3
Chemical Products	-4.4	1.5
Machinery Except Electrical	-3.8	21.6
Transport Equipment	-6.6	-1.7
Miscellaneous Manufactures	-8.4	-12.7
Textiles	-8.8	-7.2
Rubber and Plastic Products*	-4.8	-7.6
Leather Products	-13.1	5.1
Paper and Paper Products	-0.5	-0.2

Note:

*  -   new sector in the 2000-based series

Sectors are ranked according to their contribution to the overall 2000-based December 2009 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