• Value of Production grows in August 2012

  Value of Production Index (VaPI) of the manufacturing industry continued to grow as it posted a year-on-year increase of 3.0 percent in August 2012, according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). Footwear and wearing apparel contributed significantly to the increase with 73.8 percent growth, followed by major sectors that registered two-digit growth in production value, namely: transport equipment (37.5%), food manufacturing (25.3%), publishing and printing (25.0%), wood and wood products (17.9%), textiles (14.2%), and machinery except electrical (13.7%) . Refer to Tables 1-A and 1.

  On the other hand, on a monthly basis, VaPI continued to decelerate at a slower rate of 0.3 percent in August 2012. Two (2) major sectors exhibited two-digit decreases in production values, namely: leather products (-14.7%) and footwear and wearing apparel (-14.6%). Refer to Tables 1-A and 1.

   

• Volume of Production grows at a slower pace.

  Volume of Production Index (VoPI) reflected an annual increment of 3.5 percent in August 2012. Sectors that influenced the increase were the following: footwear and wearing apparel (75.1%), furniture and fixtures (43.8%), transport equipment (38.2%), wood and wood products (30.4%), publishing and printing (17.8%), food manufacturing (16.6%), textiles (14.3%) and fabricated metal products (12.6%). Refer to Tables 1-B and 2.

  On a monthly comparison, however, VoPI decreased 1.0 percent in August 2012. Fourteen (14) major sectors experienced drop in factory output and with two-digit decreases in the following: footwear and wearing apparel (-15.0%), leather products (-14.7%), petroleum products (-13.0%) and furniture and fixtures (-12.5%). Refer to Tables 1-B and 2.

• Value of Net Sales contracts in August 2012

  Value of Net Sales Index (VaNSI) continued to fall as it posted an annual decrement of 5.5 percent in August 2012. This was attributed to the decline in production values in nine (9) major sectors, offsetting the increases reported by 11 major sectors. Refer to Tables 2-A and 3.

  Likewise, on a month-on-month basis, VaNSI continued to decrease registering at 3.7 percent in August 2012. Two-digit contractions in sales value were noted in the following major sectors: food manufacturing (-12.1%), footwear and wearing apparel (-11.4%) and textiles (-10.7%). Refer to Tables 2-A and 3.

• Volume of Net Sales declines

  On a year-on-year basis, Volume of Net Sales Index (VoNSI) further fell by 5.0 percent in August 2012. Three (3) of the eight (8) major sectors attributed to the decrease in sales volume, namely: basic metals (-36.1%), petroleum products (-32.8%) and miscellaneous manufactures (-16.6%). Refer to Tables 2-B and 4.

  On a monthly change, VoNSI also dropped 4.4 percent in August 2012. Sectors that influenced the decrease were the following: petroleum products (-14.4%), food manufacturing (-12.3%), footwear and wearing apparel (-11.9%), furniture and fixtures (-11.5%) and textiles (-10.8%). Refer to Tables 2-B and 4.

• Capacity Utilization in August 2012 is 83.2 percent

  Average capacity utilization in August 2012 for total manufacturing stood at 83.2 percent. Ten of the 20 major sectors registered capacity utilization rates of 80 percent or more, namely:

  • petroleum products (87.5%)
  • basic metals (86.6%)
  • food manufacturing (86.3%)
  • electrical machinery (85.0%)
  • machinery except electrical (84.4%)
  • non-metallic mineral products (83.4%)
  • rubber and plastic products (82.2%)
  • chemical products (82.2%)
  • paper and paper products (81.6%)
  • miscellaneous manufactures (81.5%)

  The proportion of establishments that operated at full capacity (90% to 100%) was 18.4 percent in August 2012. About 57.9 percent of the establishments operated at 70% to 89% capacity while 23.7 percent of the establishments operated below 70% capacity.

TECHNICAL NOTES

• Introduction

  The Monthly Integrated of Selected Industries (MISSI) is one of the designated statistical activities undertaken by the National Statistics Office to provide flash indicators on the performance of growth-oriented industries in the manufacturing sector. The survey gathers monthly data on employment, compensation, production, net sales, inventories and capacity utilization.

  Beginning with the January 2012 MISSI, the monthly report for the survey will be released earlier, that is, 45 days after each reference month instead of the 55 days.

  The indicators generated from the 2012 MISSI are Value of Production Index (VaPI), Volume of Production Index (VoPI), Value of Net Sales (VaNSI), and Volume of Net Sales (VoNSI). However, the VoPI and VoNSI are derived indicators utilizing the 2012 Producer Price Index as deflator.

• Method of Index Computation

  The MISSI utilizes the Laspeyres-type method of index computation where the weights are computed from the value of production of the Census of Philippine Business and Industry (CPBI).

  For the 2012 MISSI index series with base year of 2000, the weights of the major sectors and sub-sectors were computed from the results of the 2000 CPBI for manufacturing establishments with average total employment of 20 and over. The weights are computed from the value of products sold plus change in inventories.

  The formulas in the computation are as follows:

  

  

  

  

  

  

  

  

  

• Industry Coverage

  The industry coverage of the 2012 MISSI conforms with the amended 1994 PSIC groupings. There are 20 major sectors as shown below with 10 further disaggregated into sub-sectors.

   

  1994 PSIC CODE	INDUSTRY DESCRIPTION
  15 except 155	Food Manufacturing*
  155	Beverages
  16	Tobacco products
  17	Textiles*
  18,174 and 192	Footwear and wearing apparel
  191	Leather products
  20	Wood and wood products*
  21	Paper and paper products
  22	Publishing and printing
  23	Petroleum products*
  24	Chemical products*
  25	Rubber and plastic products*
  26	Non-metallic mineral products*
  27	Basic metals*
  28	Fabricated metal products
  29 and 30	Machinery except electrical*
  31 and 32	Electrical machinery*
  34 and 35	Transport equipment
  36	Furniture and fixtures
  33, 37 and 39	Miscellaneous manufactures

                                  Note: * - Major sectors categorized into sub-sectors

   

• Response Rate

  The response rates for the August 2012 MISSI and 2012 PPS are 81.9 percent and 93.6 percent, respectively. Refer to Tables 7 and 8