Industry

Industry, which accounts for 30.6 percent of total GDP, contributed 1.3 percentage points to total GDP growth. 

Manufacturing

Manufacturing surged to 5.3 percent in the first quarter of 2003, more than double the growth of 2.4 percent registered in the previous year. Growth of the sector was driven by food manufacture, basic metal industries, beverage industries, products of petroleum and coal and, footwear and wearing apparel.

Food manufacture increased by 8.8 percent during the period from 10.6 percent in 2002. Accounting for about 43.0 percent of total manufacturing, it provided the biggest contribution to the sector’s growth. Basic metal industries posted a remarkable growth of 101.3 percent from 4.9 percent recorded a year ago. Likewise, products of petroleum and coal rose by 15.8 percent from negative 20.6 percent. Beverage industry was up by 8.6 percent from negative 14.6 percent. Footwear and wearing apparel grew by 9.7 percent from 4.5 percent. Other gainers for the quarter include textile manufacture, furniture and fixtures, and wood and cork products.

On the other hand, cutbacks in production were reported in the following industries: tobacco manufacture declined by 46.9 percent; non-metallic products by 14.3 percent; electrical machinery by 5.3 percent; and paper and paper products by 7.7 percent.

Construction

Construction reported an improvement during the first quarter of 2003 with a lower negative growth of 3.2 percent from negative 7.7 percent in the same period last year. Public construction, which plummeted to 21.6 percent from negative 7.3 percent in the previous year, pulled down the over-all growth of the sector. Private construction, on the other hand, shot up by 25.1 percent, a turn-around from the negative growth of 1.7 percent growth in 2002.

Mining and Quarrying 

Output of Mining and Quarrying in the first quarter of 2003 dwindled by 8.9 percent, following remarkable double-digit growths in all quarters of 2002. This was largely attributed to the zero production of crude oil from the Malampaya Oil Rim Project resulting to a negative 7.1 percent growth in the current quarter from a huge growth recorded in 2002. Gold likewise shrank by 3.4 percent, from positive 26.7 percent as Philex Padcal Project, the lone gold producer, reported lower production due to the low grade of ore. Other metals that registered declines were Nickel with negative 20.0 percent; Chromium with negative 50.0 percent and Other metallic with negative 25.0 percent. Partly offsetting these reversals are the growth of Other non-metallic, which accelerated to 35.8 percent from 22.3 percent due to increased production of semirara coal; Stone quarrying, clay and sandpits, which rebounded by 35.3 percent from the slump of 40.9 percent a year ago; and Copper mining which however, reported a slower growth of 19.6 percent compared to its remarkable growth of 180.9 percent in the previous year. 

Electricity, Gas and Water

Electricity, gas and water improved its performance in the first quarter of 2003 as it posted a 3.1 percent compared to the 1.7 percent growth reported in the previous year. Electricity almost maintained its growth of 3.7 percent, from 3.5 percent in the same quarter of last year. The water sub-sector declined by 4.7 percent during the first three months of the year from negative 16.0 percent growth recorded in 2002.

GROSS VALUE ADDED in INDUSTRY
1st Quarter 2003 and 1st Quarter 2002
AT CONSTANT 1985 PRICES, IN MILLION PESOS

Source: National Statistical Coordination Board

Posted 29 May 2003