• Value of Production on upward trend in March 2012

Value of Production Index (VaPI) for total manufacturing gained further as it posted a two-digit increment of 11.0 percent in March 2012, according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). Fourteen major sectors accounted for the growth in VaPI led by footwear and wearing apparel with 95.6 percent. Other major sectors that exhibited a two-digit increases were the following: furniture and fixtures (70.8%), tobacco products (27.3%), electrical machinery (25.7%), food manufacturing (25.1%), publishing and printing (17.3%), petroleum products (16.7%), beverages (12.4%) and rubber and plastic products (10.4%). Refer to Tables 1-A and 1.

VaPI, on a monthly basis, continued to grow at 7.5 percent in March 2012. Eighteen of the 20 major sectors posted increases in VaPI, led by wood and wood products with two-digit increase of 21.4 percent. Refer to Tables 1-A and 1.

• Volume of Production continues to grow in March 2012.

Likewise, Volume of Production Index (VoPI) recorded a year-on-year growth of 8.2 percent in March 2012. Significant expansions in production output were noted in the following major sectors: furniture and fixtures (95.1%), footwear and wearing apparel (94.6%), tobacco products (28.4%), electrical machinery (28.0%), publishing and printing (17.3%), food manufacturing (16.1%), wood and wood products (13.7%) and beverages (11.3%). Refer to Tables 1-B and 2.

On a month-on-month change, VoPI accelerated to 7.9 percent in March 2012. Four of the 18 major sectors reported double-digit increases as follows: wood and wood products (20.4%), electrical machinery (13.7%), miscellaneous manufactures (12.3%) and leather products (11.1%). Refer to Tables 1-B and 2.

• Value of Net Sales decelerates in March 2012

Value of Net Sales Index (VaNSI) continued to decrease as it posted a year-on-year decrement of 1.9 percent in March 2012. Among the nine major sectors reporting decreases in VaNSI, five major sectors significantly contributed to the decline, namely: basic metals (-42.3%), textiles (-28.9%), paper and paper products (-12.5%), furniture and fixtures (-10.8%) and food manufacturing (-10.5%). Refer to Tables 2-A and 3.

On a month-on-month basis, however, VaNSI grew 6.6 percent in March 2012. This was due to the two-digit growth in nine out of 16 major sectors that registered increases in VaNSI. Wood and wood products posted the largest increase of 24.4 percent followed by beverages (20.3%). Refer to Tables 2-A and 3.

• Volume of Net Sales likewise decreases

Volume of Net Sales Index (VoNSI) also slump merely by 4.4 percent in March 2012 compared to the year ago figure. Sectors that mainly influenced the decrease in VoNSI were the following: basic metals (-39.4%), textiles (-27.2%), food manufacturing (-16.9%) and paper and paper products (-12.8%). Refer to Tables 2-B and 4.

On a monthly basis, VoNSI modestly expanded by 7.1 percent in March 2012. This was due to the double-digit increases in VoNSI noted in the following major sectors: wood and wood products (23.3%), beverages (20.3%), machinery except electrical (19.7%), non-metallic mineral products (15.5%), electrical machinery (15.2%), basic metals (11.2%) and chemical products (10.2%). Refer to Tables 2-B and 4.

• Capacity Utilization in March 2012

Average capacity utilization in March 2012 for total manufacturing stood at 83.6 percent. Twelve of the 20 major sectors registered capacity utilization rates of more than 80 percent, namely: basic metals (87.5%), food manufacturing (87.4%), petroleum products (87.3%), non-metallic mineral products (84.5%), electrical machinery (84.4%), chemical products (83.6%), miscellaneous manufactures (83.2%), rubber and plastic products (83.0%), machinery except electrical (82.9%), paper and paper products (82.6%), footwear and wearing apparel (80.3%) and wood and wood products (80.1%). Refer to Table 6.

The proportion of establishments that operated at full capacity (90% to 100%) was 20.6 percent in March 2012. About 57.0 percent of the establishments operated at 70% to 89% capacity while 22.4 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.

                                             Note: * - Major sectors categorized into sub-sectors

• Response Rate

  The response rates for the March 2012 MISSI and 2012 PPS are 78.7 percent and 90.1 percent, respectively. Refer to Tables 7 and 8