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Number: 2005-73
Date Released: November 14, 2005
Home Page MONTHLY SURVEY OF PRODUCTION
EXPLANATORY NOTES

Introduction

Since 1998, the NSO has been conducting the Monthly Integrated Survey of Selected Industries ((MISSI) which covers major sectors of manufacturing. The MISSI generates and disseminates industrial indices derived from value of production data. In addition, the volume of production index (VoPI) is also being generated from MISSI by the indirect method.

In order to meet the growing demand for commodity-based and volume-based production statistics, the NSO responded by conducting the Monthly Survey of Production (MSP) starting the year 2002. The MSP, initially a joint project of NSO and the Japan International Cooperation Agency (JICA), is now a regular undertaking of the NSO.

Objectives of the MSP

The MSP intends to improve the methodology in the calculation of the monthly industrial production indices, particularly the volume of production index (VoPI) using the direct approach.

Specifically, the MSP aims to collect commodity-based and volume-based data on production, shipment and inventory for the generation of industrial production indices.

The MSP also aims to produce other indicators such as volume of sales index, volume of inventory index and inventory ratio, which are not currently being generated by NSO.

Uses of the Indices

The basic industrial indices to be used in the analysis of manufacturing trend are the following:

  • Volume of production index indicates the trend of supply of manufactured products.
  • Volume of Sales index indicates the trend of demand for manufactured products.
  • Volume of inventory index indicates the trend of stock level of manufactured products.
  • Inventory Ratio expresses the stock supply-demand relationship of the manufactured products.

Coverage

The MSP covers 156 commodities produced by the following 24 manufacturing industries:

  • Processed meat, fish, fruits and vegetables

  • Dairy products
  • Animal feeds and grain mills
  • Beverage
  • Milled and refined sugar
  • Coconut and vegetable oil (crude and refined)
  • Tobacco products
  • Paper and paper products
  • Refined petroleum products
  • Basic chemicals
  • Chemical products
  • Glass products
  • Cement
  • Basic iron and steel
  • Non-ferrous metal
  • Fabricated metal products
  • Domestic electrical appliance
  • Office, accounting and computing machinery
  • Batteries and lighting equipment
  • Electronic valves, TV and radio transmitters and line telephony
  • TV and radio receivers, and sound or video recording apparatus
  • Motor vehicles and bodies for motor vehicles
  • Parts and accessories of motor vehicles
  • Motorcycles

Commodity Index
Commodity Chart

Sample Design

Design of the survey involves the following major activities:

  1. Selection of manufacturing industries

  2. Selection of target commodities
  3. Selection of sample establishments.

The top sectors that accounted for about 75 percent of total value added for manufacturing were selected for the MSP. Value added data were taken from the results of the 1997 Annual Survey of Establishments.

Some major commodities produced by the 5-digit PSIC industries that contributed at least 80 percent of the value added to the corresponding 3-digit PSIC were selected for the MSP.

The top establishments that accounted for at least 75 percent of the value added of the selected industries and which produced one or more of the 156 target commodities were selected as samples.

Data Items

The following data items for each selected commodity are collected in the MSP.

Expected outputs

The data collected from MSP will be used to generate monthly volume indices of production, sales and inventory of commodity by industry and total manufacturing. Inventory ratio will also be generated.

Methodology for Computation of Volume of Production Index (VoPI)

At the commodity level, the VoPI is computed monthly by dividing the aggregate volume data of sample establishments during the current month by the aggregate average monthly volume data of the sample establishments during the reference year, multiplied by 100. For the MSP index, the reference year is set at 2002.

For a particular sample establishment, the average monthly volume data of the commodity for the base year is obtained by aggregating the monthly volume data for the year 2002 and divided by 12.

Concepts and Definition of Terms

Volume of Production refers to the quantity of the target commodity produced or manufactured by the establishment according to a specified unit of measure during the reference month.

Volume of Sales includes domestic and export sales. Domestic Sales refers to the quantity of the target commodity that is sold by the establishment to another establishment (producer, wholesaler, retailer, exporter, etc.), or enterprise in the domestic market according to a specified unit of measure, net of returns. Export Sales refers to the quantity of the target commodity shipped directly by the establishment outside the country.

Value of Production refers to the value of production of the target commodity produced or manufactured by the establishment, valued at producer’s price. Producer’s price refers to price of the commodity charged to the customer, including all duties and taxes which fall on the products when they leave the establishment (ex-plant price).
 

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National Statistics Office
Manila

Page last updated:
November 17, 2005