The Philippine economy continued to bore the brunt of the endless increases in oil and consumer prices exacerbated by the persistent political uncertainties coupled with the sluggish industry sector as the seasonally adjusted estimates of the Gross Domestic Product and Gross National Product decelerated by 0.6 percent and 1.7 percent, respectively, during the third quarter of 2005. Only the Agriculture, Fishery and Forestry (AFF) sector managed to post a significant growth.

Original Data vs.
Seasonally Adjusted Gross Domestic Product

PERSONAL CONSUMPTION EXPENDITURE

On the demand side, the Seasonally Adjusted Personal Consumption Expenditure decelerated to 1.0 percent from 1.5 percent during the second quarter of 2005 as the continued price hikes made the consumers more cautious in their spending.

AGRICULTURE, FISHERY AND FORESTRY

The Agriculture, Fishery and Forestry sector continued to grow as it posted a 3.4 percent growth. Corn production, fishery, livestock and poultry and banana all contributed to the growth negating the contraction of palay production.

INDUSTRY

The Industry sector contracted to 0.9 percent in the current quarter after making a significant turn around of 2.2 percent in the previous quarter. The decline in construction and the deceleration in Electricity and Water pulled the sector down.

SERVICES

The seasonally adjusted Services sector grew by 0.5 percent during the third quarter of 2005 albeit at a slower pace. The growth was the lowest since the fourth quarter of 2000. All sub-sectors slowed down except Financial services, which performed creditably well despite bleak scenario in the third quarter.