The total gross revenue of industries continued to sustain its double digit growth at 15.1 percent in the first quarter of 2006. This is based on the July 2006 issue of the Quarterly Economic Indices (QEI) of the Philippines, using data from the Quarterly Survey of Philippine Business and Industries (QSPBI). The top two industries which posted the highest increases in gross revenue for the period are Finance and Trade which grew by 21.9 percent and 18.9 percent, respectively. These are largely attributed to the surge in interest income, income from fee-based transactions and gains from the sale of government securities of banks for Finance and higher sales from petroleum, pharmaceutical, and supermarket products for Trade.

The first quarter’s double-digit growth is the ninth consecutive since the first quarter of 2004. Within the period, the highest growth of 19.9 percent was recorded during the first quarter of 2005.

While gross revenue has grown robustly since 2004, total employment showed minimal increases ranging from 1.0 percent in first quarter of 2004 to 1.2 percent in first quarter of 2006. Among others, one possible factor claimed by most industries can be gleaned from their increased efficiency in operation when higher revenues are realized from employing lesser number of workers.

Of the eight major industries that make up the total economy, four industries posted accelerated growths in total employment for the first quarter of 2006. The highest growth was recorded for real estate at 7.4 percent. Electricity and water, posting the second highest growth, registered a 5.8 percent growth after three consecutive quarter of decline. Manufacturing recovered from last year’s negative 0.8 percent growth to a positive 0.8 percent growth. Trade continued to increase at 1.6 percent from the same period last year. Increases are also recorded for other industries namely: mining and quarrying, transportation and communication, finance and private services – showing growths of 2.6 percent, 1.0 percent, 2.5 percent and 1.9 percent from last year’s 4.4 percent, 4.1 percent, 7.4 percent and 3.3 percent growths, respectively.

Despite minimal growth in employment recorded in the first quarter of 2006, total compensation which represents the salaries and wages paid out by all industries in cash and in kind accelerated to 4.9 percent from 3.5 percent growth last year. Higher compensation was recorded for finance and transportation and communication at 19.2 percent and 16.9 percent, respectively. Similarly, improvements were also recorded for real estate which accelerated to 11.6 percent from last year’s growth of 9.0 percent as well as electricity and water which turned around to 8.7 percent from a 2.1 percent dip last year. Mining and quarrying, manufacturing, trade and private services posted decelerating growths of 3.5 percent, 5.2 percent, 1.1 percent and 0.9 percent, from a year ago growths of 4.6 percent, 5.9 percent, 6.0 percent and 1.5 percent, respectively.

As a result of the faster increase in compensation compared to employment, compensation per employee expanded to 3.6 percent from last year’s 3.1 percent growth. Finance, along with transportation and communication, continued to post double-digit growths of 16.3 percent and 15.7 percent, respectively. Corresponding increases were also recorded for mining and quarrying which grew by 0.9 percent, manufacturing by 4.4 percent, electricity and water by 2.7 percent and real estate by 3.9 percent. However, trade and private services showed slight declines of 0.5 percent and 1.0 percent, respectively.

ROMULO A. VIROLA
Secretary General

Contact Persons:

Ms. Vivian R. Ilarina, Ms. Geraldine A. Mendoza and Ms. Rhea-Ann F. Austria
Tel No.: (632) 896-5372 and (632) 895-2481
E-mail: vr.ilarina@nscb.gov.ph, ga.mendoza@nscb.gov.ph, raf.austria@nscb.gov.ph