Value of production and net sales for total manufacturing increased in June 1999 by 2.3 percent and 2.0 percent respectively compared to a year ago according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI).

However, volume of production and net sales posted year-on-year declines of 1.1 percent and 3.0 percent, respectively.

Food manufacturing, tobacco and chemicals showed increases in both production and sales. Food and chemicals in particular gained from increases in both domestic and export demand. On the other hand, beverages, textile, wearing apparel, wood, furniture, paper, petroleum, basic metals, and non-metallic mineral products posted decreases in both production and sales. This can be attributed to the general slowdown in manufacturing activities.

Production and sales of tobacco and chemical manufactures improved due to inventory management even as their use of existing capacity was reduced. On the other hand, inventory buildup was observed in rubber products and miscellaneous manufactures.

 
Value of Production

In June 1999, the value of production index (VaPI) of 510.4 increased by 2.3 percent from 498.7 in June 1998. Year-on-year increases were observed in 8 out of 16 major sectors (See Annex 1A). Relative to the sector contribution to the June 1999 growth rate, food manufacturing posted the highest year-on-year VaPI growth of 29.8 percent due to the production increases in milled and refined sugar and coconut products. Other sectors that posted double-digit increases were chemicals (14.5%), transport equipment (22.5%), and rubber products (43.8%).

On the other hand, basic metals went down by 45.8 percent due to the decrease in the production of iron and steel. In June 1999, about 40 percent of the establishments in this subsector had capacity utilization below 50%. This can be attributed to the drop in construction activities that resulted to low demand and production. Other sectors that posted double-digit decreases were textile (-21.8%), wood & wood products (-27.5%), wearing apparel (-14.9%), non-metallic mineral products (-22.1%), and paper & paper products (-14.8%).

 
Volume of Production

The volume of production index (VoPI) decreased by 1.1 percent to 145.6 from 147.3 last year. Ten out of 16 sectors posted year-on-year decreases led by basic metals which decreased by 38.4 percent (See Annex 1B). Other sectors which contributed to the decline of the overall VoPI were textile (-25.1%), petroleum products (-6.7%), wearing apparel (-18.9%), wood & wood products (-26.3%), non-metallic mineral products (-26.3%), paper & paper products (-20.5%), electrical machinery (-6.8%), beverage (-10.9%), and furniture & fixtures (-9.8%).

 
Value of Net Sales

The value of net sales for June 1999 increased by 2.0 percent compared to last year. Six out of 16 sectors posted increases led by electrical machinery which increased by 31.7 percent (See Annex 2A). Other sectors that recorded increases were food manufacturing (9.8%), chemicals (18.3%), transport equipment (8.6%), beverages (2.7%), and tobacco (2.2%).

On the other hand, basic metals posted the biggest decline of 37.0 percent. Other sectors that posted double-digit decreases were textile (-16.4%), paper & paper products (-16.3%), and furniture & fixtures (-11.0%).

 
Volume of Net Sales

The volume of net sales for June 1999 posted a decrease of 3.0 percent over last year. Decreases were observed in twelve sectors led by petroleum products, which declined by 14.1 percent (See Annex 2B). The other sectors with double-digit decreases were basic metals (-26.3%), textile (-19.9%), paper & paper products (-21.9%), non-metallic mineral products (-18.8%), rubber products (-20.4%), beverages (-13.1%), and furniture & fixtures (-13.0%).

 
Capacity Utilization

Responding establishments operating below 70% capacity were 44.6 percent in June 1999 compared to 37.1 percent a year ago. About 16.3 percent operated at full capacity (90%-100%) compared to 17.7 percent in June 1998.

The following sectors that had decreased use of existing capacity in June 1999 were beverage, tobacco, wearing apparel, wood, chemicals, non-metallic mineral products, basic metals and transport equipment. On the other hand, food, .furniture & fixtures, paper & paper products, rubber products, electrical machinery and miscellaneous manufactures showed indications of increasing capacity utilization. Capacity utilization is defined as the ratio of output to the maximum rated capacity of the plant.

 
Response Rate: The results are based on the responses of 438 establishments, which comprise 79.2 percent of the total samples in the survey.