Production and sales for total manufacturing in March 1999 continued to decline though at a slower rate compared to a year ago according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI).

The volume of production declined to 3.3 percent in March from 7.7 percent in February. The volume of net sales also decreased to 4.9 percent from 13.8 percent.

The negative performance was seen in consumer-oriented manufactures (food, and wearing apparel), in industrial inputs (paper & paper products, chemicals, and petroleum products),and in construction-related commodities (non-metallic mineral products and basic metals). These sectors appeared to be among those which have been drawing down from their existing inventories.

There were indications though of some inventory replenishment and/or build-up in textile, beverage, tobacco and furniture & fixtures, in anticipation of increases in consumer demand.

The situation was somehow better when compared month-on-month to February 1999. The volume of production grew by 7.9 percent in March compared to 1.2 percent in February. However the volume of net sales decelerated to 2.9 percent from 33.9 percent.

Double-digit (month-on-month) growths both in production and sales were observed in wood & wood products, transport equipment, non-metallic mineral products and tobacco.

Value of Production

In March 1999, the value of production index (VPI) of 485.5 decreased by 1.2 percent compared with 491.4 in March 1998. Year-on-year decreases were observed in 8 out of 16 major sectors (See Annex 1A). Petroleum products dropped by 14.0 percent due to the economic slowdown and also the low price of imported crude oil. Other sectors that decreased were basic metals (-25.9%), non-metallic mineral products (-31.4%), chemicals (-11.0%), wearing apparel (-15.6%), wood & wood products (-24.4%), paper & paper products (-5.9%) and food manufacturing (-1.1%). On the other hand, textiles posted a year-on-year growth of 13.6 percent attributed to the expected demand of uniforms. Other sectors that posted double-digit growths were rubber products (30.8%), beverage (16.4%) and miscellaneous manufactures (21.8%).

Volume of Production

The volume of production index (VoPI) declined by 3.3 percent from 147.6 last year to 142.8. Nine out of 16 sectors posted year-on-year decreases led by petroleum products, which declined by 13.1 percent (See Annex 1B). Other sectors which largely contributed to the decline of the overall VoPI were chemicals (-16.0%), non-metallic mineral products (-28.5%), wearing apparel (-15.5%), wood & wood products (-23.2%), basic metals (-9.5%), food manufacturing (-2.9%), paper & paper products (-12.3%) and transport equipment (-4.3%).

Value of Net Sales

The value of net sales for March 1999 decreased by 1.7 percent compared to last year. Ten out of 16 sectors contracted led by food manufacturing, which declined by 25.9 percent (See Annex 2A). Other sectors that recorded declines were petroleum products (-17.8%), beverage (-51.2%), non-metallic mineral products (-21.4%), paper & paper products (-18.4%), basic metals (-6.8%), wearing apparel (-5.2%), textile (-4.1%), furniture & fixtures (-12.1%) and tobacco (-2.0). On the other hand, six sectors posted growth. These were electrical machinery (63.9%), transport equipment (37.1%), wood & wood products (27.2%), rubber products (35.9%), chemicals (4.4%), and miscellaneous manufactures (89.1%).

Volume of Net Sales

The volume of net sales for March 1999 posted a decline of 4.9 percent over last year. Decreases were noted in 10 sectors led by food manufacturing, which decreased by 27.3 percent (See Annex 2B). This was followed by petroleum products (-21.9%), beverage (-58.1%), non-metallic mineral products (-31.8%), paper & paper products (-24.0%), textile (-7.3%), wearing apparel (-5.0%), furniture & fixtures (-24.6%), chemicals (-1.5%) and tobacco (-0.7%). On the other hand, six sectors posted growth. These were led by electrical machinery, which increased by 57.8 percent. This was followed by wood & wood products (29.3%), transport equipment (20.9%), basic metals (8.4%), miscellaneous manufactures (77.7%) and rubber products (14.6%).

Capacity Utilization

Responding establishments operating below 70% capacity were 39.2 percent in March 1999 compared to 39.1 percent a year ago. About 16.0 percent operated at full capacity (90%-100%) compared to 17.5 percent in March 1998.

At least eight of the sixteen sectors had declining use of their existing capacity in March. On the other hand, rubber products, electrical machinery and miscellaneous manufactures showed indications of increasing industrial output and capacity utilization. While their volume of net sales were still declining, capacities in textile, furniture, paper and chemicals were also reported as increasingly being used in expectation of improved demand. 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 373 sample establishments, which comprised 67.5 percent of the total number of establishments covered by the survey.
 
 
 

	GROWTH (%)
GAINERS	March	Februaryr
Textile	13.6	29.6
Electrical Machinery	6.8	-7.8
Rubber Products	30.8	26.7
Transport Equipment	8.5	1.2
Beverage	16.4	15.6
Miscellaneous Manufactures	21.8	26.7
Furniture & Fixtures	7.9	6.6
Tobacco	7.7	8.2

LOSERS

Petroleum Products	-14.0	-13.7
Basic Metals	-25.9	-34.9
Non-Metallic Mineral Products	-31.4	-30.0
Chemicals	-11.0	2.7
Wearing Apparel	-15.6	-29.2
Wood & Wood Products	-24.4	-37.9
Paper & Paper Products	-5.9	8.1
Food Manufacturing	-1.1	-1.0

                                                                                     GROWTH (%)

GAINERS	March	February
Petroleum Products	9.8		133.7
Chemicals	18.9			6.0
Electrical Machinery	13.3			-3.3
Wood & Wood Products	31.5			14.1
Paper & Paper Products	24.3			-6.8
Non-Metallic Mineral Products	14.8			4.4
Food Manufacturing	2.3			-7.1
Transport Equipment	10.5			53.7
Textile	6.4			34.9
Tobacco	18.8			-13.3
Furniture & Fixtures	3.1			14.6
Rubber Products	0.6			-31.0

LOSERS

Basic Metals	-7.0	10.4
Wearing Apparel	-6.7	7.7
Miscellaneous Manufactures	-44.0	41.4
Beverage	-3.0	3.0

Note: Sectors are ranked according to their contribution to the overall March 1999 growth rate.
 

                                                                    GROWTH (%)

GAINERS	March	February
Electrical Machinery	57.8	-11.7
Wood & Wood Products	29.3	-31.7
Transport Equipment	20.9	-29.1
Basic Metals	8.4	22.0
Miscellaneous Manufactures	77.7	-1.9
Rubber Products	14.6	10.8

LOSERS

Food Manufacturing	-27.3	-20.4
Petroleum Products	-21.9	-31.6
Beverage	-58.1	-13.4
Non-Metallic Mineral Products	-31.8	-37.1
Paper & Paper Products	-24.0	-27.8
Textile	-7.3	-22.7
Wearing Apparel	-5.0	23.7
Furniture & Fixtures	-24.6	-24.6
Chemicals	-1.5	13.4
Tobacco	-0.7	0.3

                                                                              GROWTH (%)

GAINERS	March	February
Chemicals	18.7		6.4
Electrical Machinery	13.6	-3.3
Wood & Wood Products	31.5		14.1
Paper & Paper Products	22.8	-5.7
Food Manufacturing	4.1	-6.0
Non-Metallic Mineral Products	14.4	3.8
Transport Equipment	10.5		53.7
Textile	6.3		34.7
Tobacco	18.8	-13.3

LOSERS

Petroleum Products	-16.5	145.8
Basic Metals	-7.2	10.4
Wearing Apparel	-6.5	7.7
Miscellaneous Manufactures	-43.0	38.3
Beverage	-3.0		3.0
Furniture & Fixtures	-7.5	-7.5
Rubber Products	-1.8	-30.5

Note: Sectors are ranked according to their contribution to the overall March 1999 growth rate.
 

Distribution of Key Enterprise by Capacity Utilization (In percent)
Capacity   Utilization	1998										1999
	MAR	APR	MAY	JUN	JUL	AUG	SEP	OCT	NOV	DEC	JAN	FEB	MAR
Below 50 %   50 - 59 % 60 - 69 % 70 - 79 % 80 - 89 % 90 - 100 %	10.4     11.6     17.1     21.6     22.0     17.5	11.9     12.3     13.9     23.1     22.1     16.6	12.6     11.2     15.4     21.1     23.2     16.5	13.1     9.9     14.1     21.3     23.9     17.7	12.3     8.5     17.1     22.4     21.4     18.4	11.8     11.3     17.2     20.5     22.7     16.6	11.8     11.4     16.8     22.3     20.9     16.8	12.3     12.3     17.1     20.2     20.9     17.3	13.1     10.5     15.5     21.0     21.8     18.1	12.5     12.5     15.9     20.3     23.5     15.4	12.3     12.3     15.3     21.9     21.6     16.8	13.8     11.6     16.4     22.6     22.0     13.5	14.3     10.6     14.3     22.1     22.6     16.0

 

Percentage Changes in Production and Net Sales of Key Enterprises: March 1998 - March 1999

ITEM

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

Year-on-Year Change

Production     Value      Volume  Net Sales      Value     Volume

9.5r -0.4r    5.7 4.2

-5.3r -14.6r    0.7 -9.9

0.8r -9.9r    11.8 3.7

7.2r -5.0r    5.0 -10.4

-0.2r -11.6r    3.3 -5.4

-6.4r -15.7r    -12.8 -23.3

-0.5r -9.9r    -5.1 -16.0

-7.6r -15.7r    -21.7 -15.0

-17.4r -24.2r    -10.7 -16.1

-8.2r -13.7r    -5.2 -6.0

-5.1r -6.3r    -12.2 -19.0

-7.2r -7.7r   -11.1 -13.8

-1.2 -3.3    -1.7 -4.9

Month-on-Month Change

Production     Value      Volume  Net Sales      Value     Volume

1.3r 3.0r    2.9 5.7

-11.6r -12.1r    -1.1 -3.7

4.6r 3.9r    6.5 10.7

8.2r 7.8r    -2.4 -3.0

-2.2r -2.2r    4.1 4.9

-3.5r -3.3r    -12.5 -11.3

5.6r 5.1r    4.1 2.5

-4.7r -5.1r    5.6 -1.1

-2.3r -2.8r    1.7 0.5

-6.0r -4.9r    1.9 1.5

3.2r 3.1r    -2.7 -10.2

-1.6r -1.2r    31.3 33.9

7.8 7.9    8.0 2.9

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