Date: May 2003

Manufacturing on a Two-Month Growth Streak

The country's total manufacturing output, as measured by the volume of production index (VoPI), grew by 1.8 percent YoY in February, following a 3.7 percent growth in January this year.

Preliminary results of the monthly-integrated survey of selected industries (MISSI) by the National Statistics Office (NSO) show that the annual gain in total manufacturing output was mainly brought about by the increased production of basic metals, wood and wood products, leather products, nonmetallic mineral products, textile, beverage, food manufacturing, furniture and fixtures and petroleum products in February.

On a monthly basis, the volume of production also picked up by 1.4 percent in February on the back of increased production of textile and furniture and fixtures.

Meanwhile, the value of production index (VaPI) posted a strong annual growth of 11.4 percent in February following a 12.8 percent growth in January. On a monthly basis, the value of production pushed up by 1.7 percent in February.

Production Growth in February 2003
	% YoY	% MoM
Total	1.8	1.4
Basic Metals	76.9	-0.6
Wood & Wood Products	64.7	3.8
Machinery Excluding Electrical	3.2	1.7
Non-Metallic Mineral Products	38.0	3.9
Footwear & Wearing Apparel	-6.4	2.5
Textile	29.0	13.9
Beverage	16.7	5.4
Fabricated Metal Products	1.6	-5.7
Food Manufacturing	12.8	3.9
Furniture & Fixtures	12.4	10.8
Publishing & Printing	9.5	-10.1
Petroleum Products	11.9	-6.1
Transport Equipment	-7.1	-5.5
Miscellaneous Manufactures	-7.0	-3.9
Electrical Machinery	-16.4	8.1
Leather Products	38.1	-38.6
Paper & Paper Products	-13.6	2.7
Chemical Products	-21.5	-2.1
Rubber Products	-2.2	2.1
Tobacco	-39.9	1.7
Source: National Statistics Office

The volume of net sales grew by 5.8 percent YoY in February after rising 8.6 percent in January because of improved sales of wood and wood products, textile, publishing and printing, machinery excluding electrical, furniture and fixtures, nonmetallic mineral products, petroleum products, food manufacturing, footwear and wearing apparel and beverage. On a monthly basis, the volume of net sales shrank by 0.6 percent in February largely because of decreases in the sales of leather products, basic metals, petroleum products, miscellaneous manufactures, printing and publishing and tobacco.

The value of net sales picked up by 17.5 percent YoY in February after rising 19.7 percent in January. On a monthly basis, the value of net sales dropped minimally by 0.1 percent in February.

Prices of production, as measured by the Producer's Price Index (PPI), went up by 9.4 percent YoY in February after increasing 8.8 percent in January. Double-digit increases were noted in the prices of production of footwear and wearing apparel, paper and paper products, electrical machinery, chemical products, rubber products, basic metals and leather products. On a monthly basis, the PPI increased by 0.3 percent in February.

Also in February, the average capacity utilization for total manufacturing was estimated at 76.5 percent. Among the sectors that posted over 80 percent capacity utilization rate were machinery excluding electrical, footwear and wearing apparel and rubber products.

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