A. Year-on-year Growth for August 2023

1. Value of Production Index (VaPI)

The VaPI for manufacturing continued to increase at an annual rate of 9.1 percent in August 2023. This was faster compared with its annual growth of 4.9 percent in the previous month. In August 2022, VaPI recorded a double-digit annual increment of 12.3 percent. (Figure 2, and Tables A and 1)

The expansion in the annual growth of the VaPI in August 2023 was mainly attributed by the slower annual decrease in the index of manufacture of computer, electronic and optical products industry division with 2.9 percent annual decline in August 2023 from a double-digit annual drop of 16.0 percent in the previous month. The manufacture of computer, electronic and optical products contributed 37.4 percent to the annual uptrend of VaPI for the manufacturing section in August 2023. Out of the 22 industry divisions for the manufacturing section, manufacture of computer, electronic and optical products was the second industry division with the highest weight^[1] in the computation of VaPI.
 

Other main contributors to the higher year-on-year growth of VaPI in August 2023 were manufacture of food products with an annual growth rate of 3.3 percent during the period from an annual decline of 1.6 percent in the previous month, and manufacture of coke and refined petroleum products with 39.3 percent annual increase in August 2023 from 26.1 percent in the previous month.

Of the remaining 19 industry divisions, six exhibited annual upturns during the period. Meanwhile, 13 industry divisions posted annual declines in August 2023. The manufacture of furniture posted the fastest annual drop of 30.0 percent during the period. (Tables C and 1)

The top three industry divisions contributing to the overall year-on-year growth of VaPI for manufacturing in August 2023 were the following:

a. Manufacture of coke and refined petroleum products;   
b. Manufacture of beverages; and   
c. Manufacture of transport equipment.

The VaPI for manufacture of food products registered an annual increment of  3.3 percent during the month after exhibiting an annual decline of 1.6 percent in July 2023. In August 2022, VaPI posted a double-digit annual growth of 22.2 percent. (Figure 3, and Tables 1 and 1a)

The increase in the year-on-year growth of the VaPI for manufacture of food products in August 2023 was primarily driven by the faster annual increase in the manufacture of prepared animal feeds industry group at 30.4 percent during the period from 2.5 percent in the previous month.

Other primary contributors to the year-on-year upturn of VaPI for manufacture of food products were the annual increase observed in the processing and preserving of fruits and vegetables at 18.8 percent in August 2023 from an annual drop of 12.1 percent in the previous month, and processing and preserving of fish, crustaceans and mollusks with 7.2 percent annual growth in August 2023 from an annual decline of 5.1 percent in the previous month. (Table 1a)

2. Volume of Production Index (VoPI)

The VoPI for manufacturing registered a year-on-year increment of 8.5 percent in August 2023, which was faster than the annual growth rate of 4.9 percent in the previous month. In August 2022, VoPI recorded an annual increase of 4.6 percent. (Figure 2, and Tables A and 2)

The higher annual growth rate of VoPI in August 2023 was mainly brought about by the annual increases in the same top three industry divisions that contributed to the higher annual rate of VaPI during the period. These were the following:

1.     Manufacture of computer, electronic and optical products, 5.2 percent annual decline from 17.0 percent annual decrease in the past month;

2.     Manufacture of food products, 0.7 percent annual increase from 3.4 percent annual decline in the previous month; and

   c. Manufacture of coke and refined petroleum products, 48.0 percent annual increment from 35.6 percent annual increase in July 2023.

Of the remaining 19 industry divisions, seven registered year-on-year increases in August 2023. In contrast, 12 industry divisions posted annual declines during the period. The highest annual drop was observed in manufacture of furniture at 31.9 percent. (Tables D and 2)

The top three industry divisions contributing to the overall year-on-year growth of VoPI for manufacturing in August 2023 were the following:

a. Manufacture of coke and refined petroleum products;   
b. Manufacture of transport equipment; and   
c. Manufacture of beverages.

The VoPI for manufacture of food products recorded an annual increase of 0.7 percent in August 2023 from its previous month’s annual decline of 3.4 percent. In August 2022, VoPI posted double-digit  annual increase of 11.9 percent. (Figure 3, and Tables 2 and 2a)

The annual rate of VoPI for manufacture of food products in August 2023 was mainly caused by the double-digit annual increment in the manufacture of prepared animal feeds industry group at 28.6 percent during the month from an annual increase of 0.4 percent in the previous month.

Other main drivers to the annual increase of VoPI for manufacture of food products were processing and preserving of fruits and vegetables with 14.9 percent annual increase during the month from an annual drop of 11.5 percent in July 2023, and the slower annual decline in processing and preserving of fish, crustaceans and mollusks at 2.9 percent in August 2023 from 14.7 percent annual drop in the previous month. (Table 2a)

3. Value of Net Sales Index (VaNSI)

The VaNSI for manufacturing recorded a slower annual decrease of 1.2 percent in August 2023 compared with its annual drop of 4.3 percent in the previous month. In August 2022, VaNSI recorded a double-digit annual increase of 24.1 percent. (Figure 5, and Tables A and 3).

The slower year-on-year decline of VaNSI during the month was primarily brought about by the slower annual decrement in the manufacture of computer, electronic and optical products industry division at 4.1 percent in August 2023, from a double-digit annual decrease of 14.8 percent in July 2023. The manufacture of computer, electronic and optical products contributed 40.7 percent to the trend of VaNSI for the manufacturing section in August 2023.

Other main contributors to the slower annual decline of VaNSI in August 2023 were manufacture of coke and refined petroleum products with slower annual decrease of 1.9 percent during the period from a double-digit annual drop of 18.3 percent in the previous month, and manufacture of beverages with a faster annual increment of 14.7 percent in August 2023 from 10.1 percent growth in July 2023.

Furthermore, eight out of the 19 remaining industry divisions posted annual increases, while 11 exhibited annual downturns in their indices during the period. The highest year-on-year decrement was recorded in manufacture of furniture at 26.6 percent during the period. (Tables E and 3)

The top three industry divisions contributing to the overall year-on-year growth of VaNSI for manufacturing in August 2023 were the following:

a. Manufacture of computer, electronic and optical products;   
b. Manufacture of food products; and   
c. Manufacture of chemical and chemical products.

The VaNSI for manufacture of food products exhibited an annual annual drop of 2.7 percent in August 2023, after posting an annual growth of 1.1 percent in July 2023. In August 2022, VaNSI recorded an annual increase of 6.1 percent. (Figure 6, and Tables 3 and 3a)

The year-on-year decline of VaNSI for manufacture of food products in August 2023 was primarily brought about by the annual decrease in the manufacture of other food products industry group at 0.9 percent in August 2023 from an annual increase of 7.0 percent in July 2023. The manufacture of other food products industry group includes bakery products, sugar, and condiments, among others.

Other primary contributors to the year-on-year downturn of VaNSI for manufacture of food products were manufacture of prepared animal feeds with an annual decrease of 6.0 percent in August 2023 from an annual increase of 0.1 percent in the previous month, and a faster annual decrease in manufacture of vegetable and animal oils and fats at 40.6 percent in August 2023 from 33.0 percent in the previous month. (Table 3a)

4. Volume of Net Sales Index (VoNSI)

The VoNSI for manufacturing registered a slower year-on-year decrement in   August 2023 at 1.7 percent relative to its annual decrease of 4.4 percent in July 2023. In August 2022, VoNSI recorded a double-digit annual increase of 15.5 percent. (Figure 5, and Tables A and 4)   
                 
The slower decrements of VoNSI in August 2023 was mainly brought about by the same top three industry divisions that contributed to the slower annual decrease of VaNSI during the period. These were the following:

a. Manufacture of computer, electronic and optical products, 6.4 percent annual decrease from 15.8 percent annual drop in the past month;   
b. Manufacture of coke and refined petroleum products, 4.3 percent annual growth rate from 12.1 percent annual decline in the previous month; and   
c. Manufacture of beverages, 5.6 percent annual increase from 1.1 percent annual increment in July 2023.

Furthermore, 10 out of the 19 remaining industry divisions exhibited annual increases during the period, while the other nine industry divisions posted annual declines. The highest year-on-year decrement was observed in manufacture of furniture at 28.6 percent during the period. (Tables F and 4)

The top three industry divisions contributing to the overall year-on-year growth of VoNSI for manufacturing in August 2023 were the following:

1.       Manufacture of food products;   
   b. Manufacture of computer, electronic and optical products; and   
   c. Manufacture of chemical and chemical products.

The VoNSI for manufacture of food products registered an annual drop of 5.1 percent in August 2023. This was faster compared with its annual declines in July 2023 at 0.9 percent and in August 2022 at 2.8 percent. (Figure 6, and Tables 4 and 4a)

The faster annual decrease of VoNSI for manufacture of food products in August 2023 was primarily driven by the annual decrease in the manufacture of other food products industry group at 5.7 percent during the month from 1.4 percent annual increase in the previous month. Other primary contributors to the year-on-year downturn of VoNSI for manufacture of food products were the faster annual decline in the manufacture of vegetable and animal oils and fats at 35.9 percent in August 2023 from 25.2 percent in the previous month, and processing and preserving of fruits and vegetables with an annual decrease of 9.9 percent in August 2023 from an annual growth rate of 3.7 percent in the previous month. (Table 4a)

 B. Average Capacity Utilization Rate

Based on responding establishments, the average capacity utilization rate for manufacturing section in August 2023 was reported at 73.9 percent from 73.6 percent in the previous month.

All industry divisions reported capacity utilization rates of more than 50 percent during the month. The top three industry divisions in terms of reported capacity utilization rate were manufacture of machinery and equipment except electrical (80.3%), manufacture of rubber and plastic products (79.5%), and manufacture of transport equipment (79.3%). (Table 6)

The proportion of establishments that operated at full capacity (90% to 100%) was 25.4 percent of the total number of responding establishments. Meanwhile, 39.9 percent operated at 70 to 89 percent capacity, and 34.7 percent operated at 70 percent and below capacity. (Table B)

CLAIRE DENNIS S. MAPA, PhD   
Undersecretary   
National Statistician and Civil Registrar General

 

 

 

 

 

 

 

 

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