VALUE OF PRODUCTION INDEX (VPI)
The VPI of key manufacturing enterprises increased by 6.4 percent to 454.3 in July 1997 from 427.1 in the same month last year. On a month-on-month basis, the VPI likewise increased by 4.1 percent from June's 436.3. 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 aimed to provide flash indicators on the performance of key manufacturing enterprises.
· Year-on-year
Increases were observed in 9 out of 16 major sectors. Electrical machinery led all sectors with an increase of 44.2 percent which contributed the biggest share of 80.4 percent to the 6.4 percent overall increase. The increase in the said sector can be attributed to the gains in production of microcircuits.
On the other hand, food manufacturing (with a decrease of -9.3%) contributed 36.8 percent to the negative component of the year-on-year performance. Textile (with a decrease of -26.5%) and petroleum products (-4.4%) contributed 27.8 percent and 17.0 percent, respectively, to the downward pull on the annual growth of VPI.
· Month-on-month
Transport equipment posted the highest increase of 34.8 percent which contributed 34.0 percent to the positive component of the month-on-month growth. Other sectors which significantly contributed to the positive growth component were petroleum products (which increased by 5.6%) with a 25.3 percent contribution; basic metals (by 8.9%), 14.3 percent; and wearing apparel (by 9.4%), 13.4 percent.
Meanwhile, two sectors significantly contributed to the negative growth component of the VPI. These were food manufacturing with a 13.3 percent decline and a 60.5 percent contribution to the negative effect on the month-on-month performance and electrical machinery with a 13.8 percent decrease and a contribution of 33.2 percent.
VALUE OF PRODUCTION INDEX
Over last Year...
GAINERS POSITIVE CONTRIBUTION TO
(unweighted) GROWTH OVERALL GROWTH RATE
Electrical Machinery 44.2% 80.4%
Beverage 15.0% 5.5%
Tobacco 12.4% 0.4%
Miscellaneous Manufactures 12.2% 0.9%
Furniture & Fixtures 10.1% 1.0%
Transport Equipment 4.0% 2.9%
Rubber Products 3.7% 1.0%
Chemicals 3.6% 5.6%
Wearing Apparel 2.2% 2.3%
LOSERS NEGATIVE CONTRIBUTION TO
(unweighted)GROWTH OVERALL GROWTH RATE
Textile -26.5% -27.8%
Wood & Wood Products -12.1% - 8.7%
Food Manufacturing - 9.3% -36.8%
Paper & Paper Products - 6.3% - 4.9%
Petroleum Products - 4.4% -17.0%
Non-Metallic Mineral Products - 2.4% - 1.6%
Basic Metals - 2.4% - 3.3%
Over last month...
GAINERS POSITIVE CONTRIBUTION TO
(unweighted) GROWTH OVERALL GROWTH RATE
Transport Equipment 34.8% 34.0%
Furniture & Fixtures 16.2% 2.1%
Wearing Apparel 9.4% 13.4%
Basic Metals 8.9% 14.3%
Petroleum Products 5.6% 25.3%
Textile 5.3% 6.4%
Paper & Paper Products 3.7% 3.3%
Rubber Products 3.5% 1.2%
Tobacco 0.8% 0.0%
Miscellaneous Manufactures 0.1% 0.0%
LOSERS NEGATIVE CONTRIBUTION TO
(unweighted) GROWTH OVERALL GROWTH RATE
Electrical Machinery -13.8% -33.2%
Food Manufacturing -13.3% -60.5%
Non-Metallic Mineral Products - 2.4% - 1.9%
Beverage - 1.9% - 0.9%
Chemicals - 1.7% - 3.5%
Wood & Wood Products - 0.1% - 0.1%
VOLUME OF PRODUCTION INDEX (VoPI)
The VoPI is derived from VPI and Producer's Price Index with 1992 as the base year. The index is a measure of change in volume, net of inflation.
· Year-on-year
The VoPI for July 1997 of key manufacturing enterprises was estimated at 153.2 which was a year-on-year increase of 5.8 percent. Electrical machinery led all sectors with an increase of 46.6 percent which contributed the biggest share of 75.9 percent to the positive component of the annual growth.
On the other hand, three sectors posted double-digit year-on-year decreases. Petroleum products had a negative growth of 13.2 percent which contributed 34.0 percent to the downward pull on VoPI growth. Wearing apparel followed with a -29.3 percent decline and a 23.8 percent contribution. Textile dipped by -31.4 percent contributing 21.8 percent; and paper and paper products, -20.0 percent contributing 10.2 percent.
· Month-on-month
The VoPI increased by 4.0 percent to 153.2 in July 1997 from 147.2 last month. Transport equipment grew by 34.7 percent and contributed the biggest share of 39.9 percent to the rise in VoPI. Other sectors that posted gains and double-digit shares to VoPI growth were: basic metals with an 8.3 percent increase and a 15.7 percent share; petroleum products with a 2.8 percent increase and a 14.9 percent share; and wearing apparel with an 8.3 percent increase and a 13.8 percent share.
On the other hand, two sectors contributed significantly to the negative component of the month-on-month performance of the VoPI. Food manufacturing declined by -12.2 percent contributing a share of 58.4 percent while the -13.5 percent decrease of electrical machinery had a corresponding share of 34.4 percent.
The July 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
Over last year...
GAINERS POSITIVE CONTRIBUTION TO
(unweighted)GROWTH OVERALL GROWTH RATE
Electrical Machinery 46.6% 75.9%
Beverage 29.0% 9.6%
Furniture & Fixtures 9.1% 0.8%
Rubber Products 8.1% 1.8%
Transport Equipment 6.8% 4.5%
Other Mfg. Industries 6.0% 0.4%
Food Manufacturing 2.3% 7.0%
LOSERS NEGATIVE CONTRIBUTION TO
(unweighted)GROWTH OVERALL GROWTH RATE
Textile -31.4% -21.8%
Wearing Apparel -29.3% -23.8%
Paper & Paper Products -20.0% -10.2%
Petroleum -13.2% -34.0%
Wood & Wood Products -12.7% - 6.0%
Tobacco - 6.1% - 0.1%
Basic Metals - 2.9% - 2.6%
Chemicals - 0.9% - 1.0%
Non-Metallic Mineral Products - 0.7% - 0.3%
Over last month...
GAINERS POSITIVE CONTRIBUTION TO
(unweighted)GROWTH OVERALL GROWTH RATE
Transport Equipment 34.7% 39.9%
Furniture & Fixtures 16.2% 2.5%
Rubber Products 10.7% 4.3%
Wearing Apparel 8.3% 13.8%
Basic Metals 8.3% 15.7%
Textile 4.4% 6.4%
Petroleum 2.8% 14.9%
Other Manufacturing Industries 2.2% 0.3%
Paper & Paper Products 2.1% 2.2%
Tobacco 0.8% 0.0%
LOSERS YEAR-ON-YEAR NEGATIVE CONTRIBUTION TO
(unweighted)GROWTH OVERALL GROWTH RATE
Electrical Machinery -13.5% -34.4%
Food Manufacturing -12.2% -58.4%
Non-Metallic Mineral Products - 2.5% - 2.1%
Wood & Wood Products - 1.9% - 1.7%
Beverage - 1.9% - 1.0%
Chemicals - 1.1% - 2.4%
