NSCB - Third Quarter 2007 GNP

Third Quarter 2007
Gross National Product &
Gross Domestic Product by Industrial Origin

Manufacturing pushes Industry growth

Industry accounted for 33.3 percent of GDP and contributed 2.1 percentage points to total GDP growth, led by Manufacturing and Construction.

Turn around in Mining and Quarrying

Mining and Quarrying posted a turn around from negative 5.1 percent in 2006 to 21.8 percent in the third quarter of 2007. The upsurge in the sector is mainly due to the reversals in the growths of gold mining and other non-metallic minerals, which soared to 37.5 percent from negative 26.0 percent and 41.7 percent from negative 3.4 percent, respectively. The growth in gold mining was brought about by the increased production in small-scale mining. On the other hand, the improved growth in other non-metallic minerals was attributed to the higher demand for coal both in the local and world market.

Strong performances were also noted in Crude oil which rebounded at 3.0 percent from negative 1.0 percent; Stone Quarrying, Clay & Sandpits, grew by 13.3 percent albeit slower than the 15.1 percent last year; other metallic minerals, soared to 372.8 percent from negative 14.7 percent; and, Copper which escalated by 31.3 percent from negative 9.9 percent

On the other hand, Nickel Mining plummeted to negative 27.2 percent in the third quarter of 2007 from a robust 262.9 percent growth in 2006. The big drop in production of nickel was attributed to the unfavorable weather conditions which affected mining operation and the quality of ore. Chromium mining likewise dived to negative 36.0 percent from a high of 23.6 percent growth in 2006. The turn around in chromium mining was ascribed to the decline in the production and lower market demand.

Manufacturing continues to grow

Manufacturing continued to post gains at 3.3 percent in the third quarter of 2007, albeit lower than the 4.4 percent growth in 2006. Food Manufacturing, which grew by 5.4 percent from 6.1 percent, provided the biggest contribution to growth. This was followed by accelerated growth in Beverage Industries, which rose to 19.5 percent from 6.2 percent; Products of petroleum & coal, expanded by 3.4 percent from negative 2.3 percent; Basic metal industries, up by 11.0 percent from 26.7 percent; and, Miscellaneous Manufactures, up by 9.1 percent from 24.6 percent. Production gains were also registered in Transport equipment, Non metallic mineral industries, Furniture and Fixtures, Wood and Cork Products, Footwear and Wearing Apparel, Machinery excluding Electrical, Paper and Paper Products, and Textile industries.

On the other hand, the following pulled down manufacturing growth during the quarter: Electrical machinery, which declined by 6.9 percent from a growth of 11.7 percent; Metal Products, dropped by 4.2 percent from 13.5 percent growth; Tobacco, down by 3.3 percent from a growth of 3.5 percent; Rubber Products, down by 2.2 percent from 5.5 percent growth. Chemical and Chemical Products, posted a lower negative of .01 percent from negative 1.1 percent.

Cutbacks were likewise recorded in Publishing and printing and Leather and leather products.

Construction posts robust gains

Construction posted a robust growth of 16.7 percent in the third quarter of 2007 from 8.3 percent in the same period of 2006.

Demand from Commercial sector boosts Electricity

Electricity and water grew by 8.5 percent in the third quarter of 2007 lower than the 9.2 percent recorded in the same period last year. The growth in electricity was boosted by the strong demand from the commercial sector.

Similarly, the Water sub-sector slowed down to 8.8 percent from 9.2 percent in the previous year. Growth was attributed to the improved operating efficiencies of the major players in the sector.

GROSS VALUE ADDED in INDUSTRY
3rd Quarter 2006 and 3rd Quarter 2007
IN MILLION PESOS

At Constant 1985 Prices

INDUSTRY	Q3 2006	Q3 2007	Growth Rate (%)
INDUSTRY SECTOR	102,763	109,068	6.1
a. Mining & Quarrying	3,655	4,453	21.8
b. Manufacturing	76,000	78,538	3.3
c. Construction	12,152	14,187	16.7
d. Elect,Gas and Water	10,956	11,890	8.5

At Current Prices

INDUSTRY	Q3 2006	Q3 2007	Growth Rate (%)
INDUSTRY SECTOR	474,640	509,109	7.3
a. Mining & Quarrying	20,376	22,765	11.7
b. Manufacturing	343,831	361,481	5.1
c. Construction	57,331	68,515	19.5
d. Elect,Gas and Water	53,101	56,349	6.1

GROSS VALUE ADDED in INDUSTRY
2005 and 2006
IN MILLION PESOS

INDUSTRY	AT CURRENT PRICES			AT CONSTANT PRICES
INDUSTRY	2005	2006	Growth Rate (%)	2005	2006	Growth Rate (%)
INDUSTRY SECTOR	1,735,148	1,907,980	10.0	396,882	414,931	4.5
a. Mining & Quarrying	63,639	75,557	18.7	20,032	18,813	-6.1
b. Manufacturing	1,264,651	1,381,171	9.2	293,334	306,837	4.6
c. Construction	210,191	235,189	11.9	45,852	49,213	7.3
d. Elect,Gas and Water	196,668	216,062	9.9	37,663	40,068	6.4

Source: National Statistical Coordination Board (NSCB)

Posted November 29, 2007.