The increase in the remittances of Overseas Filipino Workers (OFWs) and the deceleration in the increase in prices of consumer goods and services led to a 4.9 percent expansion in the consumption of consumer goods and services.  This growth  is an acceleration from the 3.5 percent  registered for the same period a year ago and is the highest growth achieved since  the same growth was posted in the fourth quarter of 1997.

Food, which consists the bulk of PCE, contributed 2.2 percentage points to the growth in total PCE with its 4.2 percent  increase from the 2.8 percent growth it posted last year.  Such increase in food is due mainly to the increase in the consumption of agricultural crops, livestock, poultry and manufactured food products.  The growth in food expenditure is the highest recorded since the fourth quarter of 1997.

Contributing 0.9 percentage point to total PCE growth, miscellaneous expenditures went up by 5.5 percent on account of the expansion in education, health, recreational, and personal services availed by households.

Though growing at a slower pace, transportation and communication expenditure helped beef total PCE with its 11.7 percent increase or a 0.8 percentage point contribution to total PCE growth.  Sustained increase   in the patronage of rail transport such as the LRT and MRT,   the hefty increase in wireless or cellular phone subscription and  the surge in short messages sent resulted to the growth in transportation and communication expenditure.

Expenditures on fuel, light, and water, which ballooned to 10.2 percent from a 4.0 percent decline a year ago, contributed 0.4 percentage point to the total PCE growth.  This was due to the increase in both electricity and water consumption by households compared to the unusual low level for the same period in the previous year.

Household operation, which has a total share of 10 percent to total PCE level, grew by 2.7 percent which translates to a 0.3 percentage point contribution to total PCE growth.

Clothing and footwear, household furnishings and beverage which grew by 3.4 percent, 2.7 percent, and 4.0 percent, respectively, contributed 0.1 percentage point each to total PCE growth.  The increase in the purchases of household appliances resulted in the accelerated growth in household furnishings.  Likewise, the increased consumption of both alcoholic and non-alcoholic beverages led to the accelerated growth in beverage expenditures.  Meanwhile, tobacco had a negligible contribution to total PCE growth with a decelerated pace of 1.4 percent compared to its 1.7 expansion in the first quarter of 2002.

PER CAPITA: GROSS DOMESTIC PRODUCT, GROSS NATIONAL PRODUCT, and PERSONAL CONSUMPTION EXPENDITURE
1st  QUARTER 2003, 1ST QUARTER 2002

Notes :  * Figures for 2001-2003 are the new population estimates based on the NSCB Resolution No. 2 (series of 2002), Adoption of the Decennial Census-Based Population Growth Rates. The average annual growth rate (exponential) for 2001-2003 was 2.3128 percent.

Source: National Statistical Coordination Board

Posted 29 May 2003