Total gross revenue of industries grew by 12.8 percent in the first quarter of 2007, from 15.1 percent in 2006.  Real Estate continued to post the fastest growth at 29.9 percent, boosted by higher income from rental and leasing operations from the country’s newly-opened super malls and the sustained demand for office spaces from the Business Processing Outsourcing (BPO) industry. This was followed by Finance, which expanded by 15.9 percent, bolstered by the resurgence of the insurance sector and the higher utilization of financial services.  Favorable performances were also registered in Trade and Transportation, Communication and Storage which grew by 14.5 percent and 10.8 percent, respectively.

Growth of total employment however, slowed down to 0.6 percent from 1.1 percent in the previous year, weighed down by the decline in Manufacturing by 0.4 percent and the flat growth registered in Electricity and Water. The rest of the industries recorded positive growths in employment: Mining and Quarrying was up by 6.4 percent; Private Services, by 3.9 percent; Trade by 1.9 percent; and Real estate and Finance with 1.4 percent and 0.8 percent growths, respectively. 

Total compensation at current prices accelerated to 6.6 percent from 4.8 percent in 2006. Total compensation of industries represents the salaries and wages paid out by all industries in cash and in kind.  The top performers, which posted double-digit growths were: Transportation, Communication and Storage, up by 16.1 percent; Electricity and Water, up by 16.0 percent; Finance, up by 15.9 percent; Real Estate, up by 10.6 percent; and Mining and Quarrying, up by 10.1 percent.  Manufacturing, Trade and Private Services, likewise registered positive growths during the period.

Increases in both compensation and employment resulted to the higher growth in compensation per employee at current prices at 5.3 percent from 3.6 percent in the same period last year.  Finance reported the highest growth in terms of compensation per employee at 15.1 percent followed by Transportation and Communication and Real Estate with 14.9 percent and 9.0 percent, respectively.                                   

This report is based on the July 2007 issue of the Quarterly Economic Indices (QEI) of the Philippines.

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
Telefax :(632) 895-2481

E-mail: mfm.talento@nscb.gov.ph ; raf.austria@nscb.gov.ph ; ga.mendoza@nscb.gov.ph