• Value of Production increases in July 2012

  Value of Production Index (VaPI) for total manufacturing industry increased at a slower rate of 4.6 percent compared with the year-ago figure, according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). This may be attributed to the slowdown in the annual growth production in machinery except electrical (4.4%) and chemical products (0.1%). While the major contributing sectors with significant increases in production value were: leather products (89.9%), footwear and wearing apparel (75.8%), furniture and fixtures (43.9%), transport equipment (24.2%), beverages (21.8%), food manufacturing (19.1%), fabricated metal products (14.5%), wood and wood products (13.7%) and textiles (13.6%) . Refer to Tables 1-A and 1.

  On a monthly basis, on the other hand, VaPI dropped as it posted a decrement of 1.6 percent in July 2012 from its two-digit growth of 10.1 percent in the previous month. Significant contributors to the decline were registered in the following major sectors: tobacco products (-17.9%) and wood and wood products (-16.5%). Refer to Tables 1-A and 1.

   

• Volume of Production also shows increments.

  Volume of Production Index (VoPI) on an annual basis registered a slower rate of 4.7 percent in July 2012. This was attributed to the slowdown in production values of the electrical machinery (6.8%), chemical products (0.9%) and non-metallic mineral products (0.1%) sectors. However, sectors contributing significant increases in value of production were observed in the following: furniture and fixtures (151.0%), leather products (97.4%), footwear and wearing apparel (78.7%), wood and wood products (25.8%), transport equipment (25.0%), beverages (21.7%), fabricated metal products (20.5%), textiles (13.6%) and food manufacturing (12.1%). Refer to Tables 1-B and 2.

  On a month-on-month comparison, VoPI decreased 0.9 percent in July 2012 from the previous month's growth of 12.4 percent. This was brought about by the reduced production output of 11 major sectors, with two-digit increases noted in the following: tobacco products (-17.9%), wood and wood products (-16.3%), publishing and printing (-15.2%) and chemical products (-11.4%). Refer to Tables 1-B and 2.

• Value of Net Sales decelerates in July 2012

  Value of Net Sales Index (VaNSI), on a year-on-year basis, slipped to 0.3 percent in July 2012 from a 3.2 percent gain last month. Significant contractions in sales value were noted in the following major sectors: basic metals (-58.3%), publishing and printing (-43.4%), leather products (-16.5%), furniture and fixtures (-15.5%), paper and paper products (-11.5%) and tobacco products (-10.7%). Refer to Tables 2-A and 3.

  Likewise, on a month-on-month basis, VaNSI continued to decrease registering at 2.4 percent in July 2012. Among the 13 major sectors that reported decrease in net sales value, four major sectors significantly contributed to the decline, namely: leather products (-21.5%), footwear and wearing apparel (-14.7%), wood and wood products (-13.8%) and non-metallic mineral products (-12.2%). Refer to Tables 2-A and 3.

• Volume of Net Sales declines

  On a yearly comparison, Volume of Net Sales Index (VoNSI) slightly went down by 0.2 percent in July 2012. This was attributed to the shortfall in sales volume observed in eight major sectors, with two-digit decreases observed in the following: publishing and printing (-55.5%), basic metals (-55.1%), leather products (-13.2%) and tobacco products (-10.1%). Refer to Tables 2-B and 4.

  On a month-on-month change, VoNSI also fell by 1.6 percent from its previous month's 0.8 percent growth. Five (5) of the 13 major sectors strongly influenced the decrease in sales volume, namely: publishing and printing (-24.0%), leather products (-21.5%), non-metallic mineral products (-14.3%), wood and wood products (-13.6%) and footwear and wearing apparel (-13.3%). Refer to Tables 2-B and 4.

• Capacity Utilization in July 2012 is 83.3 percent

  Average capacity utilization in July 2012 for total manufacturing stood at 83.3 percent. Eleven of the 20 major sectors registered capacity utilization rates of 80 percent or more, namely:

  • leather products (88.1%)
  • petroleum products (88.0%)
  • food manufacturing (86.7%)
  • basic metals (86.8%)
  • machinery except electrical (84.5%)
  • electrical machinery (84.3%)
  • non-metallic mineral products (83.9%)
  • rubber and plastic products (83.0%)
  • chemical products (82.2%)
  • miscellaneous manufactures (82.2%)
  • footwear and wearing apparel (80.3%)

  The proportion of establishments that operated at full capacity (90% to 100%) was 18.7 percent in June 2012. About 57.7 percent of the establishments operated at 70% to 89% capacity while 23.6 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 July 2012 MISSI and 2012 PPS are 79.2 percent and 91.8 percent, respectively. Refer to Tables 7 and 8