VALUE OF PRODUCTION INDEX (VPI)
The value of production index (VPI) in key manufacturing enterprises decreased by 2.3 percent to 460.2 in March 1997 from 470.8 a year ago. On a month-on-month comparison, VPI increased by 0.3 percent from 458.7 last February 1997. These figures were based on the results of the Survey of Key Enterprises in Manufacturing (SKEM), a regular monthly survey of the National Statistics Office (NSO) aimed to provide flash indicators on the performance of key manufacturing enterprises.
Basic metals posted the biggest share of 50.5 percent to the growth of the VPI followed by chemicals and electrical machinery at 27.4 percent and 17.7 percent shares, respectively. Corresponding month-on-month increases were: 17.4 percent, 7.2 percent and 4.0 percent.
On the other hand, petroleum products, paper and paper products and wearing apparel contributed 34.4 percent, 14.2 percent and 12.3 percent, respectively, to the negative effects on the growth rate.
Year-on-year increases were observed in 8 out of 16 major sectors. In terms of the relative shares on the positive component of year-on-year growth of VPI, electrical machinery contributed 60.5 percent to the total increase. The increase in the electrical machinery's VPI was attributed to the gains in production of microcircuits. Non-metallic mineral products had a 15.2 percent share to the positive year-on-year growth followed by chemicals with an 11.2 percent share.
On the other hand, double-digit year-on-year decreases in VPI were attributed to four (4) sectors. Wearing apparel posted the biggest share of 32.5 percent to the negative component of the year-on-year performance. The textile sector had a 27.9 percent share while paper and paper products and transport equipment had 18.3 percent and 11.6 percent shares, respectively, to the year-on-year decrease in VPI.
VALUE OF PRODUCTION INDEX
GAINERS OVER LAST MONTH MONTH-ON-MONTH CONTRIBUTION TO THE
(unweighted)GROWTH OVERALL GROWTH RATE
Miscellaneous Manufactures 21.5% 3.9%
Basic Metals 17.4% 50.5%
Chemicals 7.2% 27.4%
Tobacco 6.7% 0.5%
Electrical Machinery 4.0% 17.7%
LOSERS OVER LAST MONTH MONTH-ON-MONTH CONTRIBUTION TO THE
(unweighted)GROWTH OVERALL GROWTH RATE
Rubber Products -11.0% - 7.1%
Paper & Paper Products - 8.5% - 14.2%
Furniture & Fixtures - 7.5% - 1.8%
Non-Metallic Mineral - 5.0% - 7.5%
Products
Wearing Apparel - 4.6% - 12.3%
Petroleum Products - 4.1% - 34.4%
Transport Equipment - 3.8% - 7.0%
Textile - 2.9% - 6.7%
Beverage - 2.2% - 2.0%
Food Manufacturing - 0.7% - 6.3%
Wood & Wood Products - 0.5% - 0.7%
GAINERS OVER LAST YEAR YEAR-ON-YEAR CONTRIBUTION TO THE
(unweighted)GROWTH OVERALL GROWTH RATE
Miscellaneous Manufactures 40.9% 4.4%
Electrical Machinery 23.0% 60.5%
Non-Metallic Mineral 17.6% 15.2%
Products
Chemicals 4.9% 11.2%
Wood & Wood Products 3.3% 2.9%
Tobacco 1.4% 0.1%
Food Manufacturing 1.2% 5.7%
Furniture & Fixtures 0.1% 0.0%
LOSERS OVER LAST YEAR YEAR-ON-YEAR CONTRIBUTION TO THE
(unweighted)GROWTH OVERALL GROWTH RATE
Textile - 34.0% - 27.9%
Wearing Apparel - 33.9% - 32.5%
Paper & Paper Products - 30.5% - 18.3%
Transport Equipment - 17.5% - 11.6%
Rubber Products - 16.5% - 3.8%
Basic Metals - 3.4% - 3.7%
Beverage - 2.3% - 0.8%
Petroleum Products - 0.5% - 1.4%
VOLUME OF PRODUCTION INDEX (VoPI)
The Volume of Production Index (VoPI) is derived from Value of Production Index (VPI) and Producer's Price Index (PPI) with 1992 as the base year. The index is a measure of change in volume, net of inflation.
On a month-on-month basis, the VoPI increased by 0.6 percent from 153.6 in February 1997 to 154.6 in March 1997. Basic metals increased by 18.6 percent which represented 51.8 percent of the positive component of the growth. Chemicals grew by 6.5 percent and this had a 23.5 percent share of the VoPI growth. The 4.4 percent growth of electrical machinery had a corresponding share to total growth of 18.7 percent. While other manufacturing industries posted the highest increase of 20.2 percent, it contributed only 3.5 percent to total growth. On the other hand, petroleum products had a contribution of 32.1 percent to the negative component of overall growth while paper and paper products had 19.1 percent and wearing apparel, 11.4 percent.
In March 1997, the VoPI of 154.6 for key manufacturing enterprises decreased by 3.6 percent as compared with the index of 160.4 last year. Electrical machinery posted the biggest share of 47.1 percent to the year-on-year growth. The other sector that posted double-digit shares to overall growth was food manufacturing with a 5.6 percent growth and a share of 21.6 percent.
On the other hand, significant year-on-year decreases were observed in 4 sectors. Wearing apparel contributed the biggest share of 26.3 percent to the decline in VoPI. Other sectors that significantly contributed to the negative growth component of the VoPI were petroleum products (25.2 percent), textile (20.3 percent), and paper and paper products (19 percent).
March 1997 SKEM covered 422 sample establishments located mostly in Metro Manila and engaged primarily in manufacturing. This report is based on a response rate of 82.2 percent.
VOLUME OF PRODUCTION INDEX
GAINERS OVER LAST MONTH MONTH-ON-MONTH CONTRIBUTION TO THE
(unweighted)GROWTH OVERALL GROWTH RATE
Other Mfg. Industries 20.2% 3.5%
Basic Metals 18.6% 51.8%
Tobacco 6.7% 0.5%
Chemicals 6.5% 23.5%
Electrical Machinery 4.4% 18.7%
Beverage 2.3% 2.0%
LOSERS OVER LAST MONTH MONTH-ON-MONTH CONTRIBUTION TO THE
(unweighted)GROWTH OVERALL GROWTH RATE
Paper and Paper Products - 12.3% - 19.1%
Rubber Products - 11.0% - 6.6%
Furniture & Fixtures - 7.4% - 1.7%
Non-Metallic Mineral - 6.8% - 9.5%
Products
Wearing Apparel - 4.6% - 11.4%
Petroleum Products - 4.1% - 32.1%
Transport Equipment - 3.8% - 6.5%
Textile - 3.1% - 6.6%
Wood & Wood Products - 1.4% - 2.0%
Food Manufacturing - 0.6% - 4.5%
GAINERS OVER LAST YEAR YEAR-ON-YEAR CONTRIBUTION TO THE
(unweighted)GROWTH OVERALL GROWTH RATE
Other Mfg. Industries 42.1% 3.5%
Electrical Machinery 23.1% 47.1%
Non-Metallic Mineral 14.6% 9.8%
Products
Beverage 9.6% 4.0%
Wood & Wood Products 6.2% 4.3%
Food Manufacturing 5.6% 21.6%
Basic Metals 5.3% 7.2%
Chemicals 1.4% 2.5%
LOSERS OVER LAST YEAR YEAR-ON-YEAR CONTRIBUTION TO THE
(unweighted)GROWTH OVERALL GROWTH RATE
Wearing Apparel - 41.2% - 26.3%
Paper & Paper Products - 47.3% - 19.0%
Textile - 37.0% - 20.3%
Tobacco - 15.6% - 0.3%
Transport Equipment - 15.6% - 6.8%
Rubber Products - 13.1% - 2.0%
Petroleum Products - 12.4% - 25.2%
Furniture & Fixtures - 0.9% - 0.1%
Source: National Statistics Office
