Preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI) for November 1998 indicated year-on-year declines in both production and net sales in the manufacturing sector. Value of production decreased by 18.1 percent and its corresponding volume, by 24.4 percent from November 1997. The value of net sales also dropped by 10.7 percent and its corresponding volume, by 16.1 percent.

The drop in production was largely attributed to the declines in petroleum products, food manufacturing, electrical machinery and transport equipment.

Petroleum products decreased year-on-year by 21.2 percent in production value and by 21.8 percent in production volume. The decline was primarily due to the partial shutdown of one refinery plant. Net sales during the same period dropped by 13.7 percent in value and 0.4 percent in volume.

Among the subsectors of food manufacturing, milled and refined sugar and processed fruits and vegetables contributed to the 9.0 percent decrease in value of production. The value of production of milled and refined sugar declined by 65.7 percent and processed fruits and vegetables by 70.3 percent.

Electrical machinery declined by 11.1 percent in value and by 24.0 percent in volume of production. The decline in this sector can be mainly attributed to the shifting in operation of some units of one microcircuits firm and the shutdown of another microcircuit plant.

Transport equipment also posted a year-on-year decrease of 46.8 percent in value of production which can be largely attributed to weak demand. Its volume of production also registered a decline of 54.7 percent.

Gainers in both value and volume of production were the paper & paper products, rubber products, textile, and wood & wood products sectors.

Paper & paper products posted a 30.8 percent uptick in value and a 15.8 increase in volume of production. The value of production in rubber products increased by 68.3 percent and its volume by 60.2 percent. Textile recorded an increase of 11.5 percent and 1.4 percent in value and volume of production, respectively. Wood & wood products increased by 1.9 percent in value and by 1.8 percent in volume of production.

Capacity utilization of responding firms/establishments showed 38.1 percent to be operating below 70 percent capacity in November 1998 compared to 29.8 percent in November 1997. On a positive note, 18.3 percent of the sample firms operated at full capacity (90%-100%) compared to 17.8 percent last year. Capacity utilization is defined as the ratio of output to the maximum rated capacity of the plant.

These results were based on the response of 304 sample firms/establishments which comprised 55.3 percent of the total number of sample enterprises covered by the survey.

Distribution of Key Enterprise by Capacity Utilization
(In percent)

Percentage Changes in Production and Net Sales of Key Enterprises:
Jan - Nov 1998

ITEM	JAN	FEB	MAR	APR	MAY	JUN	JUL	AUG	SEP	OCT	NOV
Year-on-year Change   Production
Value      Volume   Net Sales    Value    Volume	10.4 r -1.5 r   37.7 24.2	3.8 r -8.1 r   35.7 21.0	10.8 r -0.9 r   5.7 4.2	-4.4 r -13.8 r   0.7 -9.9	1.0 r -9.8 r   11.8 3.7	7.7 r -4.3 r   5.0 -10.4	-0.2 r -11.4 r   3.3 -5.4	-6.5 r -15.7 r   -12.8 -23.3	-2.9 r -12.0 r   -5.1 -16.0	-6.6   -14.6     -21.7 -15.0	-18.1   -24.4     -10.7 -16.1
Month-on-Month Change   Production
Value      Volume   Net Sales    Value    Volume	0.5 r -4.3 r   21.7 12.6	4.9 r 3.6 r   5.0 11.2	0.8 r 2.8 r   2.9 5.7	-11.8 r -12.5 r   -1.1 -3.7	3.8 r 3.1 r   6.5 10.7	8.6 r 8.4 r   -2.4 -3.0	-2.7 r -2.8 r   4.1 4.9	-3.5 r -3.4 r   -12.5 -11.3	3.2 r 2.7 r   4.1 2.5	-1.3   -1.6     5.6 -1.1	-4.1   -4.3     1.7 0.5

r - revised due to updating of data from late responding establishments.
 

ANNEX 1-A

Year-on-year decreases were observed in 11 out of 16 major sectors resulting in an 18.1 percent decline in the value of production. Posting the biggest drop among the sectors was transport equipment which decreased by 46.8 percent due to the economic slowdown. Other sectors that posted year-on-year decreases were petroleum products (-21.2%), food manufacturing (-9.0%), basic metals (-25.0), electrical machinery (-11.1%), chemicals (-9.9%), non-metallic mineral products (-24.0%), and beverage (-12.6%).

On the other hand, paper & paper products posted a year-on-year growth of 30.8 percent due to the increase in the seasonal demand for paper packaging products. Other sectors that posted positive growths were rubber products (68.3%), wearing apparel (10.3%), textile (11.5%), and wood & wood products (1.9%).

On a month-on-month basis, the value of production index dropped by 4.1 percent. Seven sectors experienced declines, led by chemicals which dropped by 18.1 percent after posting a 9.3 percent growth last month. Other sectors which suffered declines were electrical machinery (11.7%), textile (-5.6%), rubber products (-16.9%), paper & paper products (-5.3%), transport equipment (-3.1%), and tobacco (-9.7%).

On the other hand, nine sectors had gains in value of production, led by basic metals with an increase of 21.2 percent. The significant growth in the value of production of this sector was attributed to the increase in production of iron & steel. Other sectors that contributed to the positive performance were wood & wood products (22.8%), petroleum products (3.3%), food manufacturing (2.9%), non-metallic mineral products (9.3%), wearing apparel (4.4), beverage (10.3%), miscellaneous manufactures (11.6%), and furniture & fixtures (8.4%).

VALUE OF PRODUCTION INDEX
(NOVEMBER 1998)

The volume of production index (VoPI) for manufacturing declined by 24.4 percent due to decreases in twelve out of 16 sectors led by petroleum refineries which dropped by 21.8 percent. Other sectors which largely contributed to the negative performance of the overall VoPI were food manufacturing (-18.9%), electrical machinery (-24.0%), transport equipment (-54.7%) and chemicals (-20.6%).

On the other hand, four sectors contributed largely to the positive component of the overall VoPI. These were rubber products (60.2%), paper & paper products (15.8%), textile (1.4%), and wood & wood products (1.8%).

On a monthly basis, seven sectors declined resulting in a 4.3 percent drop in VoPI. Chemicals which declined by 18.3 percent contributed mainly to the decrease in overall VoPI. Other sectors that significantly contributed to the downward pull of the overall month-on-month growth were electrical machinery (-11.7%), textile (-5.7%), rubber products (-16.9%), and paper & paper products (4.4%).

On the other hand, four sectors exhibited positive growths over the previous month. This was led by basic metals with a 28.1 percent increase, followed by wood & wood products (22.8%), food manufacturing (2.4%), and non-metallic mineral products (11.2%).

VOLUME OF PRODUCTION INDEX
(NOVEMBER 1998)

YEAR-ON-YEAR
	GROWTH (%)
GAINERS	November	Octoberr
Rubber Products	60.2	89.3
Paper & Paper Products	15.8	22.6
Textile	1.4	-3.2
Wood & Wood Products	1.8	-14.9
LOSERS
Petroleum Refineries	-21.8	-18.7
Food Manufacturing	-18.9	-9.8
Electrical Machinery	-24.0	-9.3
Transport Equipment	-54.7	-38.8
Chemicals	-20.6	-1.7
Basic Metals	-20.5	-45.0
Wearing Apparel	-22.1	-30.5
Non-Metallic Mineral Products	-13.1	-18.2
Beverage	-18.6	-27.2
Other Manufacturing Industries	-31.9	-37.2
Furniture & Fixtures	-5.4	-22.8
Tobacco	-9.9	-2.4
MONTH-ON-MONTH
	GROWTH (%)
GAINERS	November	Octoberr
Basic Metals	28.1	-25.3
Wood & Wood Products	22.8	0.6
Food Manufacturing	2.4	2.0
Non-Metallic Mineral Products	11.2	-8.3
Wearing Apparel	4.4	10.1
Beverage	10.3	-17.7
Petroleum Refineries	0.4	-12.3
Other Manufacturing Industries	13.2	4.6
Furniture & Fixtures	8.4	3.4
LOSERS
Chemicals	-18.3	8.9
Electrical Machinery	-11.7	0.5
Textile	-5.7	-11.5
Rubber Products	-16.9	-12.7
Paper & Paper Products	-4.4	0.1
Transport Equipment	-2.5	12.6
Tobacco	-9.7	6.9

The value of net sales decreased by 10.7 percent compared to November 1997. Out of sixteen sectors, twelve sectors posted decreases led by food manufacturing which declined by 13.9 percent. Other sectors that recorded declines were petroleum products (-13.7%), basic metals (-24.7%), wood & wood products (-42.3%), paper & paper products (-38.2%), beverages (-21.7%), non-metallic mineral products (-12.4%), transport equipment (-6.4%), wearing apparel (-1.7%), textile (-0.3%), tobacco (-5.4%), and furniture & fixtures (-0.3%).

On the other hand, four sectors posted growths. Chemicals posted the biggest growth of 7.6 percent. Other sectors that posted positive growths were electrical machinery (2.4%), rubber products (4.9%), and miscellaneous manufactures (6.8%).

On a month-on-month basis, the value of net sales increased by 1.7 percent compared to the previous month. Leading the gainers was basic metals which increased by 15.8 percent. Other sectors that posted growths were petroleum products (2.5%), electrical machinery (3.7%), non-metallic mineral products (10.7%), rubber products (20.1%), transport equipment (5.7%), miscellaneous manufactures (29.0%), food manufacturing (0.1%), and beverages (0.7%).

On the other hand, seven sectors posted decreases. Wood & wood products recorded the biggest decline of 17.7 percent. Other sectors that registered decreases in their net sales value were wearing apparel (-7.6%), paper & paper products (-5.7%), chemicals (-0.4%), textile (-0.2%), tobacco (-4.1%), and furniture & fixtures (-1.3%).

NET SALES VALUE
(NOVEMBER 1998)

ANNEX 2-B

The volume of net sales for November 1998 posted a decline of 16.1 percent over the same month last year. Decreases were noted in all sectors led by food manufacturing which dipped by 23.3 percent. This was followed by wearing apparel (-30.6%), paper & paper products (-45.2%), wood & wood products (-42.3%), basic metals (-21.6%), electrical machinery (-12.4%), transport equipment (-20.4%), beverages (-27.0%), chemicals (-5.6%), textile (-9.3%), non-metallic mineral products (-9.5%), furniture & fixtures (-24.6%), petroleum products (-0.4%), miscellaneous manufactures (-6.5%), tobacco (-10.2%), and rubber products (-0.2%).

On a month-on-month basis, the volume of net sales grew by 0.5 percent over the previous month. Basic metals led the sectors with an increase of 19.6 percent. Other sectors recording increases were non-metallic mineral products (11.8%), electrical machinery (3.7%), rubber products (20.1%), transport equipment (6.3%), miscellaneous manufactures (30.9%), and beverages (0.7%).

On the other hand, sectors that posted decreases were petroleum products (-4.4%), wood & wood products (-17.7%), wearing apparel (-7.6%), paper & paper products (-4.8%), chemicals (-1.0%), food manufacturing (-0.3%), furniture & fixtures (-7.5%), textile (-0.4%), and tobacco (-4.1%).

NET SALES VOLUME
(NOVEMBER 1998)