Value of Production Index (VaPI) for the manufacturing industry recovers at a slower rate of 1.8 percent in January 2007 after registering negative growths since September 2006, according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). Sectors that mainly influenced the increase were the following: furniture and fixtures, non-metallic mineral products, footwear and wearing apparel, publishing and printing, basic metals, paper and paper products, rubber products, food manufacturing and chemical products. Refer to Tables 1-A and 1.

On the other hand, VaPI on a month-on-month basis slipped by 9.1 percent in January 2007 from its previous month's (revised) increase of 1.2 percent. This was due to the declines observed in the following sectors: food manufacturing, basic metals, wood and wood products and tobacco. Refer to Tables 1-A and 1.

Volume of Production Index (VoPI) on a yearly comparison picked up by 2.0 percent in January 2007 from a whole year round decreases in 2006. Thirteen of the 20 major sectors posted increments in production, with the following observed to have made significant contributions to the increase, namely: furniture and fixtures, non-metallic mineral products, basic metals, paper and paper products, wood and wood products and food manufacturing. Refer to Tables 2 and 1-B.

On a month-on-month basis, VoPI dropped by 9.6 percent in January 2007. Thirteen of the 20 major sectors pulled down the production, with two-digit decreases observed in the following: food manufacturing, publishing and printing, basic metals, wood and wood products and tobacco. Refer to Tables 2 and 1-B.

Value of Net Sales also reflected a year-on-year increment of 6.5 percent in January 2007. This was brought about by the higher sales in the following major sectors: footwear and wearing apparel, food manufacturing, miscellaneous manufactures, basic metals, publishing and printing and rubber products. Refer to Tables 2-A and 3.

Meanwhile, Value of Net Sales went down by 6.8 percent in January 2007 after exhibiting a revised month-on-month increase of 2.9 percent in December 2006. This was due to the poor sales performance of 16 major sectors, with two-digit decreases reported in the following: tobacco, beverages, footwear and wearing apparel, wood and wood products, basic metals and chemical products. Refer to Tables 2-A and 3.

Volume of Net Sales made a turnaround increment of 4.0 percent in January 2007 from the negative growths exhibited for the last 11 months of the previous year. Twelve of the 20 major sectors reported growth in sales volume, with significant expansions reported by the following sectors: miscellaneous manufactures, food manufacturing, basic metals, furniture and fixtures, footwear and wearing apparel, and wood and wood products. Refer to Tables 2-B and 4.

However, Volume of Net Sales on a month-on-month basis fell by 7.2 percent in January from its previous month's (revised) 2.3 percent growth. This was brought about by the reduction in sales of the following sectors: tobacco, publishing and printing, beverages, footwear and wearing apparel, chemical products, basic metals and wood and wood products. Refer to Tables 2-B and 4.

Average capacity utilization in January 2007 for total manufacturing was estimated at 80.1 percent. Sectors that registered more than 80% capacity utilization rates were the following: machinery excluding electrical, petroleum products, electrical machinery, paper and paper products, miscellaneous manufactures, rubber products, leather products,basic metals, food manufacturing and chemical products. Refer to Table 6..

The proportion of establishments that operated at full capacity (90% to 100%) was 10.4 percent in January 2007. More than half or 58.0 percent of the establishments operated at 70% to 89% capacity and 31.6 percent of the establishments operated below 70% capacity.

Distribution of Key Manufacturing Establishments by Capacity Utilization
Total Manufacturing, January 2007
(In percent)

The response rates for the January 2007 MISSI and PPS are 89.7 percent and 91.4 percent, respectively. Refer to Tables 7 and 8.

Response Rates for Total Manufacturing
(In percent)

Starting 2006, weights for the Producer Price Index (PPI) are based from the results of the 2003 Annual Survey of Philippine Business and Industry (ASPBI) for manufacturing establishments with average total employment (ATE) of 20 and over.

Data of non-responding sample establishments are estimated based on previous records and other available sources. Revisions to the preliminary estimates are done upon receipt of actual reports of late respondents.

TABLE 1-A. VALUE OF PRODUCTION INDEX, December 2006 - January 2007
(1994 =100)

TABLE 1-A. VALUE OF PRODUCTION INDEX, December 2006 - January 2007
(concluded)
(1994=100)