Date Released: September 27, 2000
MONTHLY INTEGRATED SURVEY OF SELECTED INDUSTRIES JULY 2000 Manufacturing production, as measured by the value of production index (VaPI) and volume of production (VoPI), went up by 35.8 percent and 23.9 percent respectively in July 2000 according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). Moreover, the growth in the VoPI was a reversal from the 1.7 percent contraction in July last year. Topping the gainers in terms of value and volume of production was electrical machinery, expanding by 84.5 percent and 55.8 percent, respectively. The upsurge in the production of electrical machinery can be attributed to the increase in export demand. On the other hand, the biggest decline for the month was in basic metals, with production value and volume falling by 41.6 percent and 41.5 percent, respectively. The negative performance of basic metals could be attributed to low demand, and temporary shutdowns due to labor disputes. Producer prices moved up by 9.7 percent in July 2000 compared to 4.6 percent a year ago and 6.5 percent in June 2000. This could be due to the increase in production costs particularly of oil and of other imported inputs aggravated by the weak peso. July 2000 net sales value and volume slowed down to 19.7 percent and 4.7 percent, respectively. However the performance of the volume of net sales was a turnaround from the 5.8 percent decline in July 1999. The upsurge in production vis-à-vis this slowdown in net sales indicates that manufacturers may be building up on inventory again after drawing down from stocks during the early part of the year. The biggest gainer in terms of net sales was electrical machinery, surging by 92.0 percent in value and 62.1 percent in volume from a year ago. On the other hand, the worst performer in terms of sales was also basic metals, with sales value and volume sliding down by 31.2 percent and 32.0 percent, respectively. Average capacity utilization for July 2000 for manufacturing was estimated at 79.2 percent. This was up by 1.4 percentage points over the 77.8 percent rate in July 1999. Nine out of 16 sectors improved in use of capacity as compared to last year. Furniture & fixtures had the highest rate of 91.7 percent while basic metals posted the lowest rate of 66.7 percent. In July 2000, the value of production index (VaPI) of 671.6 increased by 35.8 percent from 494.4 in July 1999. Year-on year increases were observed in 11 out of 16 major sectors led by electrical machinery, which increased by 84.5 percent (See Annex 1-A). Other sectors contributing double-digit growths to the value of production were petroleum refineries (38.3%), paper & paper products (37.4%), furniture and fixtures (34.6%), other manufacturing (33.1%), chemicals (27.7%) and wearing apparel (22.8%).
On the other hand, losers in terms of value of production were basic metals (-41.6%), rubber products (-21.5%), beverages (-6.0%), non-metallic mineral products (-5.1%), and wood & wood products (-3.4%). The volume of production index (VoPI) for total manufacturing increased by 23.9 percent to 173.0 from 139.7 of the same month last year. Nine out of 16 sectors posted year-on-year increases led by electrical machinery with a 55.8 percent increase. (See Annex 1-B). Other sectors which contributed to the positive performance were other manufacturing (40.1%), paper & paper products (38.7%), furniture and fixtures (34.6%), chemicals (24.4%), tobacco (8.9%), food manufacturing (5.0%), transport equipment (5.0 %) and wearing apparel (1.0%). The increases in the production of these sectors could be attributed to the growing demand from both domestic and export markets. On the other hand, sectors, which dipped were basic metals (-41.5%), rubber products (-20.9%), textile (-17.4%), non-metallic mineral (-12.5%), petroleum refineries (-9.1%), beverages (-6.2%), and wood & wood products (-3.4%). Slowdowns in the production in these sectors could be attributed to temporary or partial shutdowns of some establishments due to some labor disputes, and decrease in the demand from domestic and export markets. The value of net sales for July 2000 grew by 19.7 percent compared to last year. Twelve out of 16 major sectors showed improvements in their value of net sales. The leading sector was electrical machinery exhibiting a 92.0 percent growth over the same month last year (See Annex 2-A). Other sectors that recorded double-digit increases were paper and paper products (41.2%), petroleum products (35.3%), furniture & fixtures (29.5%), wearing apparel (19.9%), tobacco (17.7%), miscellaneous manufactures (14.7%) and transport equipment (11.0%).
On the other hand, sectors with lower values of net sales as compared to the same month last year were basic metals (-31.2%), wood & wood products (-24.4%), rubber products (21.2%) and beverages (-2.3%). The volume of net sales for July 2000 improved by 4.7 percent over the same month last year. Increases were observed in 9 out of 16 sectors led by electrical machinery which grew by 62.1 percent (See Annex 2-B). Other sectors that exhibited double-digit growths were paper and paper products (42.6%), furniture and fixtures (29.5%), miscellaneous manufactures (20.8%) and tobacco (18.9%). On the other hand, decreases were observed in basic metals (32.0%), wood & wood products (-24.4%), rubber products (-20.6%), textile (-12.7%), petroleum products (-11.1%), beverages (-2.5%) and wearing apparel (-1.4%). The proportion of responding establishments that operated at full capacity (90%-100%) in July 2000 improved from 14.5 percent of the same month last year to 28.4 percent (See Annex 3-A). About 37.7 percent operated below the 70 percent capacity utilization rate, lower by 7.1 percentage points from 44.8 percent in July 1999. The July 2000 average capacity utilization rate for manufacturing was estimated at 79.2 percent, higher than the 77.7 percent posted last year (See Annex 3B). Of the 16 sectors, nine sectors posted higher capacity utilization rates. The leading sector was furniture & fixtures, which recorded an average capacity utilization rate of 91.7 percent. Other sectors which registered more than 80 percent capacity utilization rate were electrical machinery (90.9%), miscellaneous manufactures (89.0%), petroleum refineries (83.7%), wearing apparel (83.4%), tobacco (80.8%), paper & paper products (81.9%), and chemicals (80.3%). These results were based on the response of 374 sample establishments, which comprised 71.9 percent of the total number of establishments covered by the survey. |
ANNEX 1-A
VALUE OF PRODUCTION INDEX (JULY 2000)
YEAR-ON-YEAR
GAINERS GROWTH %
July June r
Electrical Machinery 84.5 38.1
Petroleum Refineries 38.3 44.5
Chemicals 27.7 4.8
Paper & Paper Products 37.4 55.3
Wearing Apparel 22.8 -0.6
Food Manufacturing 3.1 -9.6
Transport Equipment 8.7 15.7
Furniture & Fixtures 34.6 48.3
Textile 2.8 -11.3
Other Manufacturing 33.1 18.0
Tobacco 7.8 2.9
LOSERS
Basic Metals -41.6 -3.6
Rubber Products -21.5 -18.0
Non-Metallic Mineral
Products -5.1 13.6
Beverages -6.0 9.0
Wood & Wood Products -3.4 -0.3
MONTH-ON-MONTH
GAINERS GROWTH %
July June r
Electrical Machinery 16.0 6.2
Chemicals 9.5 5.2
Wearing Apparel 8.7 16.3
Food Manufacturing 2.3 10.2
Textile 4.5 13.3
Transport Equipment 4.3 -3.0
Other Manufacturing 9.1 -12.1
Tobacco 2.1 -5.5
LOSERS
Basic Metals -22.3 -3.1
Non-Metallic Mineral -22.9 8.6
Products
Beverages -26.1 13.8
Petroleum Refineries -1.7 0.9
Paper & Paper Products -3.9 4.1
Furniture & Fixtures -11.1 14.8
Rubber Products -4.0 -10.1
Wood & Wood Products -1.1 -8.3
Note: Sectors are ranked according to their contribution
to the overall July 2000 growth rate.
r - revised due to updating of data from late responding
establishments.
ANNEX 1-B
VOLUME OF PRODUCTION INDEX (JULY 2000)
YEAR-ON-YEAR
GAINERS GROWTH (%)
July June r
Electrical Machinery 55.8 37.1
Chemicals 24.4 3.1
Paper & Paper Products 38.7 52.5
Food Manufacturing 5.0 -5.5
Transport Equipment 5.0 10.6
Furniture & Fixtures 34.6 48.3
Other Manufacturing 40.1 33.1
Wearing Apparel 1.0 -0.6
Tobacco 8.9 3.9
LOSERS
Basic Metals -41.5 -4.4
Petroleum Refineries -9.1 3.2
Textile -17.4 -29.1
Non-Metallic Mineral -12.5 4.0
Rubber Products -20.9 -16.7
Beverage -6.2 7.7
Wood & Wood Products -3.4 -0.3
MONTH-ON-MONTH
GAINERS GROWTH %
July June r
Chemicals 9.5 5.4
Wearing Apparel 8.7 7.3
Textile 4.5 13.3
Transport Equipment 4.4 -3.0
Food Manufacturing 0.9 10.9
Electrical Machinery 0.9 11.5
Other Manufacturing 9.1 -12.9
Tobacco 2.1 -5.5
LOSERS
Petroleum Refineries -11.4 -1.1
Basic Metals -22.3 -2.1
Non-Metallic Mineral -21.4 13.8
Beverage -25.7 13.8
Furniture & Fixtures -11.1 14.8
Rubber Products -4.0 -10.1
Wood & Wood Products -1.1 -8.3
Paper & Paper Products 0.0 4.1
Note: Sectors are ranked according to their contribution
to the overall July 2000 growth rate.
r - revised due to updating of data from late responding
establishments.
ANNEX 2-A
NET SALES VALUE (JULY 2000)
YEAR-ON-YEAR
GAINERS GROWTH (%)
July June
Electrical Machinery 92.0 -4.6
Petroleum Products 35.3 76.6
Paper & paper products 41.2 58.9
Food Manufacturing 6.3 -7.1
Wearing Apparel 19.9 10.8
Chemicals 5.8 10.5
Transport equipment 11.0 10.6
Textile 8.6 5.6
Non-metallic mineral 5.2 40.0
products
Furniture & Fixtures 29.5 38.5
Miscellaneous Manufactures 14.7 161.8
Tobacco 17.7 15.2
LOSERS
Basic metals -31.2 17.2
Wood & wood products -24.4 -35.4
Rubber products -21.2 -6.1
Beverages -2.3 17.0
MONTH-ON-MONTH
GAINERS GROWTH %
July June
Electrical Machinery 47.7 -49.8
Transport equipment 28.1 28.7
Wood & wood products 9.8 -19.4
Wearing Apparel 3.8 -4.8
Chemicals 0.1 13.6
LOSERS
Petroleum Products -9.8 20.6
Basic metals -25.3 10.3
Food Manufacturing -6.3 1.4
Non-metallic mineral -19.5 12.7
products
Beverages -30.6 16.1
Paper & paper products -7.9 4.6
Rubber products -2.0 -10.4
Textile -0.5 9.2
Miscellaneous Manufactures -2.6 143.3
Furniture & Fixtures -1.7 14.3
Tobacco -4.4 -4.5
Note: Sectors are ranked according to their contribution to the
overall July 2000 growth rate.
ANNEX 2-B
NET SALES VOLUME (JULY 2000)
YEAR-ON-YEAR
GAINERS GROWTH (%)
July June
Electrical Machinery 62.1 -5.3
Paper & paper products 42.6 56.0
Food Manufacturing 8.3 -2.9
Transport equipment 7.2 5.8
Chemicals 3.1 8.7
Non-metallic mineral 6.9 40.5
products
Furniture & Fixtures 29.5 38.5
Miscellaneous Manufactures 20.8 195.3
Tobacco 18.9 16.4
LOSERS
Basic metals -32.0 14.9
Petroleum Products -11.1 26.1
Wood & wood products -24.4 -35.4
Textile -12.7 -15.6
Rubber products -20.6 -4.6
Wearing Apparel -1.4 10.9
Beverages -2.5 15.7
MONTH-ON-MONTH
GAINERS GROWTH %
July June
Electrical Machinery 28.5 -47.4
Transport equipment 28.3 28.7
Wood & wood products 9.8 -19.4
Wearing Apparel 3.8 -7.8
Chemicals 0.1 13.7
LOSERS
Petroleum Products -18.8 18.2
Basic metals -25.0 10.3
Food Manufacturing -7.6 1.3
Non-metallic mineral -20.0 12.7
products
Beverages -30.2 16.1
Paper & paper products -4.1 4.6
Rubber Products -2.0 -10.4
Textile -0.5 9.2
Miscellaneous Manufactures -2.6 143.1
Furniture & Fixtures -1.7 14.3
Tobacco -4.4 -4.5
Note: Sectors are ranked according to their contribution to the
overall July 2000 growth rate.
ANNEX 3-A
Distribution of Key Enterprise by Capacity Utilization
(In percent)
ANNEX 3-B
Average Capacity Utilization by Major Sector
SECTOR AVERAGE CAPACITY UTILIZATION RATES
Jul'00 Jul'99 Jun'00 Jun'99 May'00 May'99 Apr'00 Apr'99 Mar'00 Mar'99
MANUFACTURING 79.21 77.76 82.34 80.31 79.66 78.04 81.60 81.68 83.74 81.46
A. FOOD MANUFACTURING 73.40 73.15 74.08 77.48 68.67 74.55 76.19 75.75 80.03 77.05
B. BEVERAGE 76.80 81.54 84.43 82.53 77.40 82.30 80.83 81.99 77.00 77.00
C. TOBACCO 80.77 76.11 77.30 73.23 85.64 72.53 85.23 73.72 90.00 78.00
D. TEXTILE 78.44 79.86 71.69 77.40 74.60 79.67 81.78 81.82 75.98 81.74
E. WEARING APPAREL 83.41 80.86 80.87 81.41 76.82 81.69 78.76 78.57 81.00 78.00
F. WOOD & WOOD PRODUCTS 73.44 74.45 75.21 76.33 72.72 73.06 73.38 73.51 85.00 84.00
G. FURNITURE & FIXTURES 91.65 79.98 92.60 80.04 88.45 79.14 82.40 81.56 84.00 80.00
H. PAPER & PAPER PRODUCTS 81.90 77.36 91.68 80.62 82.78 82.27 83.28 82.74 89.00 82.00
I. CHEMICALS 80.26 78.95 79.25 78.80 75.83 76.92 78.76 85.62 84.14 80.54
J. RUBBER PRODUCTS 75.81 83.32 76.09 83.61 86.44 83.52 89.46 86.51 87.00 84.00
K. PETROLEUM PRODUCTS 83.65 89.72 95.00 90.03 93.09 77.17 89.56 86.01 87.00 84.00
L. NON-METALLIC MINERAL 77.81 81.64 80.50 78.16 79.39 79.86 84.19 80.36 84.70 84.90
PROD
M. BASIC METALS 66.66 71.65 75.10 75.96 68.76 69.44 68.53 77.31 74.70 72.89
N. TRANSPORT EQUIPMENT 73.38 68.82 74.10 72.05 75.44 72.57 83.24 71.59 86.00 87.00
O. ELECTRICAL MACHINERY 90.90 65.99 90.96 77.09 91.78 89.96 89.14 92.33 92.77 89.59
P. MISC. MANUFACTURES 88.99 83.83 82.85 79.28 86.70 82.21 84.47 83.51 89.00 84.00
ANNEX 4
Percentage Changes in Production and Net Sales of Key Enterprises: July 1999 - July 2000
r - revised due to updating of data from late responding establishments
Source: National Statistics Office
Manila, Philippines
Page Last Updated: April 6, 2001