Total gross revenue of industries grew by 11.5 percent in the third quarter of 2006 from 13.4 percent in 2005.  Brisk sales of residential projects to OFWs, the strong demand for business office spaces by the Business Processing Outsourcing (BPO) industry, the sustained value-based promotions of wireless service providers and higher sales from newly-opened malls and supermarkets boosted revenues during the quarter. Real estate posted the highest growth with 39.7 percent, followed by transportation and communication with 14.3 percent and Trade, which grew by 14.1 percent.

Total employment, however, decreased by 0.4 percent from a growth of 0.5 percent in the previous year, weighed down by the decline in employment of real estate and manufacturing by 5.2 percent and 2.0 percent, respectively. Meanwhile, mining and quarrying and finance recorded the fastest growths at 14.5 percent and 4.7 percent, respectively. 

Total compensation slowed down to a growth of 5.0 percent from 5.5 percent a year ago. Total compensation of industries represents the salaries and wages paid out by all industries in cash and in kind. Among the industries, the highest increase was reported in transportation and communication with 17.2 percent and in mining and quarrying, with 14.3 percent. Trade accelerated from 2.0 percent to 9.5 percent while private services rebounded to a growth of 2.7 percent from negative 0.9 percent.  The rest of the sectors posted lower growths during the quarter: electricity and water, from 6.2 percent to 4.3 percent; finance, from 23.7 percent to 8.7 percent; and manufacturing, from 9.6 percent to 1.3 percent.  

The decline in employment and the slowdown in compensation, resulted in the acceleration of total compensation per employee to 5.4 from 5.0 percent in the previous year. Industries with the highest growth in terms of compensation per employee were transportation and communication with 14.9 percent, followed by real estate and trade with 12.9 percent and 9.2 percent, respectively. Favorable performances were likewise registered in manufacturing, electricity and water and finance.   

This report is based on the February 2007 issue of the Quarterly Economic Indices (QEI) of the Philippines, using data from the Quarterly Survey of the Philippine Business and Industry (QSPBI).

ROMULO A. VIROLA
Secretary General

Contact Persons:

Ms. Maria Fe M. Talento; Ms. Rhea-Ann F. Austria; Ms. Geraldine A. Mendoza
Tel Nos.: (632) 896-5372 (632) 895-2481
E-mail: mfm.talento@nscb.gov.ph; raf.austria@nscb.gov.ph; ga.mendoza@nscb.gov.ph