• Value of Production grows in June 2012

Value of Production Index (VaPI) for total manufacturing industry recorded a year-on-year growth of 2.4 percent in June 2012, improving from negative 2.9 percent posted the previous month, according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). The growth was attributed to the increases in production values reported by 12 major sectors, with two-digit increments registered by the following: footwear and wearing apparel (82.5%), transport equipment (49.7%), furniture and fixtures (40.2%), wood and wood products (36.6%), leather products (30.6%), food manufacturing (18.3%), machinery except electrical (17.9%), chemical products (17.1%) and textiles (11.2%). Refer to Tables 1-A and 1.

On a month-on-month comparison, VaPI also recovered as it grew by 4.3 percent in June 2012 from its previous month's decline of 4.4 percent. This was contributed by 12 major sectors, with two-digit increase noted in the following: petroleum products (48.3%), electrical machinery (20.9%), tobacco products (15.8%), and paper and paper products (11.7%). Refer to Tables 1-A and 1.

• Volume of Production also recovers in June 2012.

Volume of Production Index (VoPI) on an annual basis gained 4.4 percent in June 2012, showing an improvement from its previous month's decline of 4.1 percent. Eleven of 12 major sectors influenced the increase in production output, namely: footwear and wearing apparel (84.7%), furniture and fixtures (64.6%), wood and wood products (50.7%), transport equipment (46.1%), leather products (34.9%), machinery except electrical (29.5%), non-metallic mineral products (22.5%), chemical products (20.5%) food manufacturing (13.1%), textiles (12.5%) and electrical machinery (10.1%). Refer to Tables 1-B and 2.

Likewise, on a month-on-month basis, VoPI picked-up as it increased by 6.1 percent in June 2012 from the previous month's drop of 4.2 percent. This was brought about by the expanded production output of 11 major sectors, with two-digit increases noted in the following: petroleum products (63.4%), electrical machinery (22.8%), tobacco products (15.8%) and paper and paper products (14.7%). Refer to Tables 1-B and 2.

• Value of Net Sales posts a slower growth

Value of Net Sales Index (VaNSI) registered a slower year-on-year growth of 3.1 percent in June 2012. This was attributed to the diminished value of net sales in furniture and fixtures and chemical products. While the major contributing sector with significant increase in value of net sales was footwear and wearing apparel, with three-digit increment of 119.0 percent and other 10 major sectors that posted two-digit growth. Refer to Tables 2-A and 3.

On a monthly basis, VaNSI slipped to 0.8 percent in June 2012 from a 3.7 percent gain last month. Among the 11 major sectors that reported decrease in net sales value, three major sectors significantly contributed to the decline, namely: furniture and fixtures (-20.2%), publishing and printing (-10.5%) and transport equipment (-10.3%). Refer to Tables 2-A and 3.

• Volume of Net Sales accelerates

On a yearly comparison, Volume of Net Sales Index (VoNSI) continued to grow, reflecting an increment of 5.0 percent in June 2012. Significant expansion in sales volume were reported by nine out of 13 major sectors that posted increases, namely: footwear and wearing apparel (121.7%), textiles (86.5%), wood and wood products (59.9%), leather products (57.7%), machinery except electrical (37.0%), non-metallic mineral products (32.5%), transport equipment (28.2%), electrical machinery (13.1%), and fabricated metal products (10.5%). Refer to Tables 2-B and 4.

VoNSI, on a month-on-month change, maintained a positive growth of 0.9 percent in June 2012. The major contributing factor was the expansion in sales volume of 11 major sectors of the manufacturing industry, with two-digit increases observed in the following: machinery except electrical (13.2%), leather products (13.2%), footwear and wearing apparel (12.4%) and paper and paper products (10.0%). Refer to Tables 2-B and 4.

• Capacity Utilization in June 2012 is 83.4 percent

Average capacity utilization in June 2012 for total manufacturing stood at 83.4 percent. Ten of the 20 major sectors registered capacity utilization rates of 80 percent or more, namely:

The proportion of establishments that operated at full capacity (90% to 100%) was 18.4 percent in June 2012. About 58.3 percent of the establishments operated at 70% to 89% capacity while 23.3 percent of the establishments operated below 70% capacity.

• food manufacturing (86.8)
• petroleum products (86.8)
• basic metals (85.6)
• electrical machinery (84.6)
• machinery except electrical (84.6)
• non-metallic mineral products (84.3)
• miscellaneous manufactures (82.9)
• rubber and plastic products (82.7)
• chemical products (82.2)
• paper and paper products (81.0)
• wood and wood products (80.0)

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 June 2012 MISSI and 2012 PPS are 80.2 percent and 94.5 percent, respectively. Refer to Tables 7 and 8