Fixed Capital Formation

For the third quarter of 2005, investments in Fixed Capital Formation fell by 3.8 percent from a marginal growth of 3.6 growth in the previous year as investments in all its subsectors declined during the period.

Construction

The contraction in the national government’s expenditures on capital outlays for public works’ projects was maintained, pulling down investments in public construction to negative 4.8 percent in the third quarter of 2005 from a growth of 4.5 percent in 2004. Investments in private construction likewise slid to negative 4.2 percent from a growth of 1.9 percent in 2004. Overall, construction fell by 4.4 per cent from a growth of 2.8 percent in the previous year.

Durable Equipment

The uncertain political climate, which kept on in the third quarter of 2005, adversely affected investments in capital formation as Durable Equipment shrank by 3.9 percent from the 4.6 percent growth recorded a year ago. Decreased investments were registered in half of the twenty (20) types of fixed asset investments.

Significant increases in investments were noted in Air transport, which shot up to 1,074.5 percent from a shortfall of 88.0 percent; Mining, construction machineries, went up by 177.8 percent from negative 61.0 percent; and Water transport, which grew by 148.5 percent from negative 79.0 percent. Other sectors likewise increased but at a decelerated pace compared to that of last year: Other electrical machinery and apparatus rose by 7.0 percent from 95.8 percent; Telecommunications and sound recording equipment, grew by 7.1 percent from 24.8 percent; and Other special industrial machineries, up by 7.0 percent from 8.4 percent.

On the other hand, the biggest decline in investments during the period were registered in: Office machinery and data processing, which dropped further to negative 17.1 percent from negative 10.6 percent; Aircon and refrigeration equipment, a bigger drop of 26.8 percent from negative 9.6 percent; Pumps and compressors, down by 47.4 percent from negative 9.0 percent; Other general industrial machineries, down by 13.4 percent from negative 6.8 percent; and Other miscellaneous durable equipment, which declined by 21.7 percent from negative 14.1 percent in 2004.

Breeding Stocks, Orchard Development and Afforestation

In the third quarter of 2005, capital formation for the combined Breeding Stocks, Orchard Development and Afforestation decreased by 2.0 percent from a growth of 0.9 percent in 2004, due to the reduction in investments in all the subsectors, except Livestock.

Changes in Stocks

Total withdrawal from stocks in the third quarter of 2005 amounted to
P1, 063 million. Withdrawals from stocks were observed in all its sub-sectors except for corn, petroleum products, manufacturing and trade establishments.

GROSS DOMESTIC CAPITAL FORMATION BY TYPE
3rd Quarter 2005 and 3rd Quarter 2004
AT CONSTANT 1985 PRICES, IN MILLION PESOS

Source: National Statistical Coordination Board (NSCB)

Posted 29 November 2005.