A. Year-on-year Growth for February 2024
1. Value of Production Index (VaPI)
The VaPI for manufacturing continued to increase at an annual rate of 7.5 percent in February 2024 from 5.0 percent year-on-year growth rate in the previous month. This brings the average growth rate of VaPI from January to February 2024 to 6.2 percent. In February 2023, VaPI recorded an annual increase of 6.7 percent. (Figure 2, and Tables A and 1)
The expansion in the annual growth of the VaPI in February 2024 was mainly attributed by the double-digit annual increase in the manufacture of computer, electronic and optical products at 14.7 percent in February 2024 from an annual increase of 0.4 percent in the previous month. The manufacture of computer, electronic and optical products contributed 45.5 percent to the faster annual increase of VaPI for the manufacturing section in February 2024. 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 in the computation of VaPI.
Other main contributors to the higher year-on-year growth of VaPI in February 2024 were the faster annual increases in the manufacture of chemical and chemical products at 21.0 percent in February 2024 from an annual increment of 3.4 percent in the previous month, and manufacture of food products at 9.5 percent from 5.9 percent annual increase in the previous month.
Of the remaining 19 industry divisions, 12 exhibited annual upturns during the period. Meanwhile, seven industry divisions posted annual declines in February 2024. The other manufacturing and repair and installation of machinery and equipment posted the fastest annual drop of 25.4 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 February 2024 were the following:
a. Manufacture of computer, electronic and optical products;
b. Manufacture of food products; and
c. Manufacture of coke and refined petroleum products.
The VaPI for manufacture of food products registered a year-on-year increment of 9.5 percent in February 2024. This was faster compared with its annual increase in January 2024 of 5.9 percent. In February 2023, VaPI for manufacture of food products recorded an annual increase of 5.7 percent. (Figure 3, and Tables 1 and 1a)
The faster the year-on-year increment of VaPI for manufacture of food products in February 2024 was primarily driven by the double-digit annual increment in manufacture of vegetable and animal oils and fats at 18.1 percent during the month from an annual increase of 2.2 percent in the previous month.
Other primary contributors to the faster year-on-year growth of VaPI for manufacture of food products were the faster annual increases in processing and preserving of meat at 28.0 percent during the month from an annual increase of 13.1 percent in the previous month, and manufacture of prepared animal feeds at 13.6 percent from an annual increment of 2.6 percent in the previous month. (Table 3a)
2. Volume of Production Index (VoPI)
In February 2024, the VoPI for manufacturing registered a year-on-year increment of 8.9 percent, which was faster than the annual growth rate of 6.2 percent in the previous month. This brings the average growth rate of VoPI from January to February 2024 to 7.5 percent. In February 2023, VoPI recorded an annual increase of 2.6 percent. (Figure 2, and Tables A and 2)
The expansion in the annual growth of the VoPI for manufacturing in February 2024 was mainly brought about by the double-digit annual increase in the manufacture of computer, electronic and optical products at 13.4 percent in February 2024 from an annual decline of 1.4 percent in the previous month. The manufacture of computer, electronic and optical products contributed 45.2 percent to the higher annual increment of VoPI for the manufacturing section in February 2024.
Other main contributors to the higher year-on-year growth of VoPI in February 2024 were the higher annual increment in the manufacture of food products at 9.2 percent during the period from 5.2 percent annual growth in the previous month, and the double-digit annual increase observed in the manufacture of chemical and chemical products at 25.9 percent from an annual increment of 8.1 percent in the previous month.
Of the remaining 19 industry divisions, 10 registered year-on-year increases in February 2024. In contrast, nine industry divisions posted annual declines during the period. The highest annual drop was observed in other manufacturing and repair and installation of machinery and equipment at 23.7 percent. (Tables D and 2)
The top three industry divisions contributing to the overall year-on-year growth of VoPI for manufacturing in February 2024 were the following:
a. Manufacture of computer, electronic and optical products;
b. Manufacture of coke and refined petroleum products; and
c. Manufacture of food products.
The VoPI for manufacture of food products continued to increase at an annual rate of 9.2 percent in February 2024. This was faster compared with its annual growth of 5.2 percent in the previous month. On the contrary, manufacture of food products recorded an annual decline of 1.1 percent In February 2023. (Figure 3, and Tables 2 and 2a)
The faster year-on-year growth of the VoPI for manufacture of food products in February 2024 was primarily driven by the acceleration in the annual increment of manufacture of vegetable and animal oils and fats at 23.0 percent during the month from its annual increase of 8.2 percent in the previous month.
Other primary contributors to the faster year-on-year increment of VoPI for manufacture of food products were the double-digit annual increases noted in manufacture of prepared animal feeds at 16.4 percent in February 2024 from an annual increase of 2.3 percent in the previous month, and in the processing and preserving of meat at 27.7 percent during the month from an annual increase of 12.7 percent in the previous (Table 2a)
3. Value of Net Sales Index (VaNSI)
The VaNSI for manufacturing recorded a slower annual decrease of 1.7 percent in February 2024 compared with its annual drop of 6.3 percent in the previous month. This brings the average growth rate of VaNSI from January to February 2024 to a 4.0 percent decline. In February 2023, VaNSI recorded an annual increase of 5.8 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 double-digit growth rates in the manufacture of computer, electronic and optical products at 11.3 percent in February 2024 from 1.5 percent annual decrement in January 2024. The manufacture of computer, electronic and optical products contributed 47.2 percent to the trend of VaNSI for the manufacturing section in February 2024.
Other main contributors to the slower annual decline of VaNSI in February 2024 were the double-digit annual increment in the manufacture of fabricated metal products, except machinery and equipment at 15.1 percent in February 2024 from an annual drop of 1.9 percent in the previous month, and the slower annual decline of manufacture of basic metals at 13.1 percent during the month from an annual decline of 21.3 percent in the previous month.
Furthermore, 9 out of the 19 remaining industry divisions exhibited annual increases during the period, while the other 10 industry divisions posted annual decreases. The highest year-on-year decrement was noted in the other manufacturing and repair and installation of machinery and equipment at 22.6 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 February 2024 were the following:
a. Manufacture of basic metals;
b. Manufacture of other non-metallic mineral products; and
c. Manufacture of transport equipment.
The VaNSI for manufacture of food products registered an annual drop of 1.5 percent in February 2024. This was faster compared with its annual decline of 1.2 percent in January 2024. In February 2023, VaNSI for manufacture of food products posted an annual growth of 4.1 percent. (Figure 6, and Tables 3 and 3a)
The faster year-on-year decline of the VaNSI for manufacture of food products in February 2024 was primarily driven by the annual decrement in the manufacture of other food products at 2.0 percent in February 2024 from an annual increase of 3.1 percent in January 2024. The manufacture of other food products industry group includes bakery products, sugar, and condiments, among others.
Other primary contributors to the faster year-on-year decline of VaNSI for manufacture of food products were the annual decreases in the manufacture of dairy products industry group at 2.8 percent in February 2024 from 0.3 percent annual increment in January 2024, and the faster double-digit annual decrease in the manufacture of prepared animal feeds at 18.6 percent during the month from an annual drop of 15.3 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 of 0.5 percent in February 2024 relative to its annual decrease of 5.3 percent in January 2024. This brings the average growth rate of VoNSI from January to February 2024 to a 2.9 percent decrement. In February 2023, VoNSI recorded an annual increase of 1.8 percent. (Figure 5, and Tables A and 4)
The slower annual decrement of VoNSI in February 2024 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, 10.1 percent annual increment from 3.2 percent annual drop in the previous month;
b. Manufacture of fabricated metal products, except machinery and equipment, 19.3 percent double-digit annual growth from an annual increment of 1.5 percent in the past month; and
c. Manufacture of basic metals, 10.6 percent annual decrease from 19.1 percent annual decline in January 2024.
Furthermore, 9 out of the 19 remaining industry divisions exhibited annual increases during the period, while the other 10 industry divisions posted annual decreases. The highest year-on-year decrement was noted in the other manufacturing and repair and installation of machinery and equipment at 21.0 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 February 2024 were the following:
a. Manufacture of transport equipment;
b. Manufacture of basic metals; and
c. Manufacture of other non-metallic mineral products.
The VoNSI for manufacture of food products registered an annual drop of 2.1 percent in February 2024. This was faster compared with its annual decline of 2.0 percent in January 2024. The VoNSI for manufacture of food products also recorded an annual decrease of 2.3 percent in February 2023. (Figure 6, and Tables 4 and 4a)
The downturn in the year-on-year growth of the VoNSI for manufacture of food products in February 2024 was primarily driven by the annual decrement in the manufacture of other food products at 3.7 percent in February 2024 from an annual increase of 1.1 percent in January 2024. The manufacture of other food products industry group includes bakery products, sugar, and condiments, among others.
Other primary contributors to the year-on-year decrement of VoNSI for manufacture of food products were the declines in the manufacture of dairy products industry group at 2.7 percent in February 2024 from 0.6 percent annual decrement in January 2024, and the double-digit annual decrease in the manufacture of prepared animal feeds at 16.7 percent during the month from an annual decline of 15.6 percent in the previous month. (Table 4a)
B. Average Capacity Utilization Rate
Based on responding establishments, the average capacity utilization rate for the manufacturing section in February 2024 was reported at 75.0 percent from 75.2 percent in the previous month. In February 2023, average capacity utilization rate recorded at 72.7 percent.
All industry divisions reported capacity utilization rates of more than 60.0 percent during the month. The top three industry divisions in terms of reported capacity utilization rate were manufacture of machinery and equipment except electrical (84.6%), manufacture of rubber and plastic products (80.0%), and manufacture of transport equipment (80.0%). (Table 6)
The proportion of establishments that operated at full capacity (90% to 100%) was 28.3 percent of the total number of responding establishments. Meanwhile, 39.2 percent operated at 70 to 89 percent capacity, and 32.5 percent operated below 70 percent capacity. (Table B)
CLAIRE DENNIS S. MAPA, PhD
Undersecretary
National Statistician and Civil Registrar General
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