The volume of production and net sales for total manufacturing decreased in July 1999 by 4.6 percent and 5.8 percent respectively compared to a year ago according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI).

At the same time, existing capacity continued to operate at lower levels. Responding establishments operating below 70 percent capacity were 43.7 percent in July 1999 compared to 37.9 percent a year ago.

Basic metals, non-metallic mineral products, petroleum, paper & paper products, furniture & fixtures, food, beverage, tobacco, textile and wearing apparel posted decreases in both production and sales. This can be attributed to the prevailing weak construction and consumer demand leading to the shutdown of some machineries and plants. On the other hand, improving domestic and export demand for rubber, transport equipment and electrical machinery brought about increases in both their production and sales.

 
Value of Production

In July 1999, the value of production index (VaPI) of 477.3 decreased by 0.7 percent from 480.6 in July 1998. Year-on-year decreases were observed in 10 out of 16 major sectors (See Annex 1A). Basic metals posted the biggest year-on-year VaPI decline of 47.2 percent due to the decrease in the production of iron and steel. 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 wearing apparel (-16.9%), chemicals (-11.1%), non-metallic mineral products (-20.2%), and wood & wood products (-12.0%). On the other hand, petroleum products reported the highest increase of 7.5 percent. Other sectors that posted increases were rubber products (55.5%), transport equipment (18.5%), electrical machinery (4.7%), beverage (4.9%) and miscellaneous manufactures (1.7%).

 
Volume of Production

The volume of production index (VoPI) decreased by 4.6 percent to 135.5 from 142.0 last year. Twelve out of 16 sectors posted year-on-year decreases led by basic metals which decreased by 41.1 percent (See Annex 1B). Other sectors which contributed to the decline of the overall VoPI were chemicals (-16.1%), wearing apparel (-20.7%), petroleum products (-6.4%), non-metallic mineral products (-30.7%), textile (-11.9%), wood & wood products (-10.6%), beverage (-11.9%), paper & paper products (-6.0%), food manufacturing (-0.7%), furniture & fixtures (-11.5%), and tobacco (-1.7%).

 
Value of Net Sales

The value of net sales for July 1999 increased by 3.1 percent compared to last year. Six out of 16 sectors posted increases led by petroleum products which increased by 20.9 percent (See Annex 2A). Other sectors that recorded increases were transport equipment (40.7%), electrical machinery (15.9%), chemicals (14.1%), rubber products (25.4%) and wood & wood products (1.4%). On the other hand, basic metals posted the biggest decline of 31.2 percent. Other sectors that posted double-digit decreases were paper & paper products (-35.0%), and tobacco (-16.4%).

 
Volume of Net Sales

The volume of net sales for July 1999 posted a decrease of 5.8 percent over last year. Decreases were observed in eleven sectors led by petroleum products, which declined by 15.4 percent (See Annex 2B). The other sectors with double-digit decreases were basic metals (-22.7%), paper & paper products (-35.7%), wearing apparel (-13.5%), non-metallic mineral products (-15.4%), beverages (-20.8%), furniture & fixtures (-10.8%) and tobacco (-14.6%).

 
Capacity Utilization

Responding establishments operating below 70% capacity were 43.7 percent in July 1999 compared to 37.9 percent a year ago. About 15.7 percent operated at full capacity (90%-100%) compared to 18.4 percent in July 1998.

The following sectors that had decreased use of existing capacity in July 1999 were beverage, wood, chemicals and transport equipment. On the other hand, textile, basic metals, and electrical machinery 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 443 establishments, which comprise 80.1 percent of the total samples in the survey.