Production and sales for total manufacturing in February 1999 declined compared to a year ago according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). This was seen in consumer-oriented manufactures (food and paper), in industrial inputs (petroleum and non-metallic mineral products), and in durable equipment (transport equipment and electrical machinery).

There were indications though of some slight inventory build-up in beverage, tobacco, textile, furniture, and miscellaneous manufactures, possibly in anticipation of some consumer demand stimulation.

The situation was slightly improved when compared month-on-month to January 1999. Production had a near-zero contraction while sales (particularly in petroleum products, transport equipment and textile) turned in a double-digit growth.

In February 1999, the value of production index (VPI) of 449.8 decreased by 8.1 percent compared with 489.6 in February 1998. Year-on-year decreases were observed in 7 out of 16 major sectors (See Annex 1A). The VPI in petroleum products has decreased since October 1998. In February 1999, it posted the biggest drop of 13.7 percent due to the economic slowdown and also the low price of imported crude oil. Other sectors that decreased were basic metals (-37.8%), wearing apparel (-29.8%), non-metallic mineral products (-37.8%), transport equipment (-24.9%), food manufacturing (-4.9%) and paper & paper products (-11.0%). On the other hand, beverage posted a year-on-year growth of 48.4 percent attributed to the expected demand for soft drinks for the summer season. Other sectors that largely contributed to the overall growth were textile (14.3%), chemicals (6.9%) and rubber products (28.3%).

On a month-on-month basis, the VPI decreased by 0.5 percent. Six sectors contributed to the decrease, led by transport equipment which declined by 24.7 percent. Other sectors that declined were non-metallic mineral products (-12.3%), wearing apparel (-6.2%), food manufacturing (-0.9%), paper & paper products (-2.3%) and tobacco (-0.3%).

The volume of production index (VoPI) declined by 8.3 percent from 144.6 last year to 132.6. Eight out of 16 sectors posted year-on-year decreases led by food manufacturing which declined by 9.7 percent (See Annex 1B). Other sectors which largely contributed to the decline of the overall VoPI were wearing apparel (-25.8%), basic metals (-21.1%), transport equipment (-32.4%), non-metallic mineral (-30.3%), petroleum products (-4.9%), paper & paper products (-17.0%) and electrical machinery (-2.5%).

On a monthly basis, five sectors registered declines resulting in a 0.7 percent decrease in VoPI. Transport equipment which declined by 24.7 percent largely contributed to the decrease in overall VoPI. This was followed by non-metallic mineral products (-22.0%), wearing apparel (-6.2%), paper & paper products (-1.2%) and tobacco (-0.3%). On the other hand, 11 sectors exhibited growth over the previous month. Double-digit increases were seen in chemicals (24.2%), textile (31.2%), wood & wood products (15.7%), beverage (12.7%) and other manufacturing industries (48.3%).

The value of net sales for February 1999 decreased by 11.1 percent compared to last year. Nine out of 16 sectors contracted led by petroleum products which declined by 26.9 percent (See Annex 2A). Other sectors that recorded declines were food manufacturing (-16.2%), wood & wood products (-29.9%), non-metallic mineral products (-28.1%), electrical machinery (-8.8%), transport equipment (-21.2%), paper & paper products (-22.7%), textile (-15.7%) and beverages (-10.1%). On the other hand, seven sectors posted growth. These were chemicals (21.2%), wearing apparel (17.1%), rubber products (25.3%), basic metals (1.4%), miscellaneous manufactures (7.2%), furniture & fixtures (2.0%), and tobacco (2.0%).

On a month-on-month basis, the value of net sales increased by 31.3 percent. Leading the gainers was petroleum products which increased by 133.7 percent. Other sectors that posted double-digit increases were transport equipment (53.7%), textile (34.9%), basic metals (10.4%), wood & wood products (14.1%), miscellaneous manufactures (41.4%) and furniture & fixtures (14.6%). On the other hand, five sectors posted decreases, namely: food manufacturing (-7.1%), rubber products (-31.0%), electrical machinery (-3.3%), paper & paper products (-6.8%), and tobacco (-13.3%).

The volume of net sales for February 1999 posted a decline of 13.8 percent over last year. Decreases were noted in 11 sectors led by petroleum products which decreased by 31.6 percent (See Annex 2B). This was followed by food manufacturing (-20.4%), non-metallic mineral products (-37.1%), electrical machinery (-11.7%), transport equipment (-29.1%), textile (-22.7%), wood & wood products (-31.7%), paper & paper products (-27.8%), beverages (-13.4%), furniture & fixtures (-24.6%), and miscellaneous manufactures (-1.9%). On the other hand, five sectors posted growth. These were led by basic metals which increased by 22.0 percent. This was followed by wearing apparel (23.7%), chemicals (13.4%), rubber products (10.8%) and tobacco (0.3%).

However, the volume of net sales increased by 33.9 percent over the previous month. Petroleum products posted the highest increase of 145.8 percent. Double-digit increases were posted by transport equipment (53.7%), textile (34.7%), basic metals (10.4%), wood & wood products (14.1%) and miscellaneous manufactures (38.3%). On the other hand, sectors that posted decreases were food manufacturing (-6.0%), rubber products (-30.5%), electrical machinery (-3.3%), paper & paper products (-5.7%), furniture & fixtures (-7.5%) and tobacco (-13.3%).

Responding establishments operating below 70% capacity were 41.8 percent in February 1999 compared to 39.4 percent a year ago. About 13.5 percent operated at full capacity (90%-100%) compared to 17.8 percent in February 1998. This excess capacity scenario was found in food, beverages, tobacco, wood, chemicals, non-metallic mineral products, basic metals and transport equipment. 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 385 sample establishments which comprised 70.0 percent of the total number of establishments covered by the survey.

ANNEX 1-A

 
ANNEX 1-B

 
ANNEX 2-A

 
ANNEX 2-B