NSCB - 1st Quarter 2008 National Accounts

First Quarter 2008
Gross National Product &
Gross Domestic Product by Industrial Origin

Manufacturing propels Industry growth

Among the subsectors of Industry, Mining and Quarrying (M&Q) posted the fastest growth followed by Electricity, Gas and Water. All sectors contributed positively to the 3.9 percent growth of the Industry but the main growth propeller was Manufacturing which contributed 1.6 percentage points to the overall growth.

Mining and Quarrying sustains its double digit growth

Mining and Quarrying maintained its double-digit growth of 13.4 percent from the 14.7 percent the previous year. Other Non Metallic, particularly coal, was the fastest growing sub-sector of Mining and Quarrying with 57.8 percent from 5.1 percent registered in 2007. With higher grade of ore mined, Copper up its growth to 22.6 percent from 17.8 percent while Gold Mining grew a measly 0.7 percent from 5.6 percent posted last year.

Meanwhile, the other sub-sectors of Mining and Quarrying grew negatively with Other Metallic registering the fastest slippage of negative 76.4 percent from 191.8 percent registered last year. The increased production of some mining firms was not enough to halt the plunged of Nickel mining to negative 69.5 percent from 255.7 percent the previous year. Lower grade of ore forced Chromium mining to further dip to negative 49.5 from negative 8.8. Crude Oil. Natural Gas and Condensate suffered a reversal with negative 8.8 percent from 30.1 percent. Similarly, Stone Quarrying, Clay and Sandpits experienced setback with negative 3.3 percent from 9.8 percent growth recorded last year.

Manufacturing decelerates

While still contributing significantly to the overall industry growth, Manufacturing decelerated in the first quarter with a growth of 2.3 percent from 4.1 percent the previous year.

The expanded growths in Food Manufacturing which grew by 3.7 percent from 7.1 percent; Petroleum Products with 11.6 percent from 1.3 percent; Beverage, with a robust double-digit growth of 31.8 percent from negative 10.2 percent; Miscellaneous Manufacturing with 9.3 percent from 8.6 percent; and, Footwear and Wearing Apparel, which posted a lower growth of 8.2 percent from 23.5 percent failed to arrest the deceleration in manufacturing.

On the other hand, sharp declines were registered for a number of sub sectors weakening further the overall performance of Manufacturing for the quarter. Electrical Machinery, which further contracted to negative 13.0 percent from negative 5.6 percent; Chemical and Chemical Products, dipped further to negative 6.6 percent from negative 2.0 percent; Basic Metal industries, reversed its growth to negative 9.8 percent from 13.8 percent; Textile, plunged to negative 11.0 from 1.1 percent; and, Publishing and Printing, dived to negative 13.4 percent from 4.4 percent of the previous year

Construction decelerates

Construction slowed down its growth to 4.5 percent in the first quarter of 2008 from 21.7 percent registered in 2007 due to public construction which dropped to negative 9.5 percent from 18.9 percent growth in the previous year. This has a share of 31.4 percent to total construction.

Sustained demand from Commercial and Industrial users brightens Electricity

Electricity and Water utilities posted an accelerated growth of 10.4 percent from 4.4 percent the previous year. Electricity sub-sector posted a double-digit growth of 10.9 percent from 4.2 percent due to significant increases in energy sales to the commercial and industrial users. Meanwhile, the water sub sector posted a growth of 4.4 percent from 7.1 percent recorded last year.

GROSS VALUE ADDED in INDUSTRY
1st Quarter 2007 and 1st Quarter 2008

At Constant 1985 Prices

INDUSTRY/INDUSTRY GROUP	1st Qtr 2007	1st Qtr 2008	Growth Rate (%)
INDUSTRY SECTOR	102,035	106,061	3.9
a. Mining & Quarrying	5,813	6,593	13.4
b. Manufacturing	73,630	75,307	2.3
c. Construction	13,140	13,726	4.5
d. Elect,Gas and Water	9,452	10,436	10.4

At Current Prices

INDUSTRY/INDUSTRY GROUP	1st Qtr 2007	1st Qtr 2008	Growth Rate (%)
INDUSTRY SECTOR	484,440	516,423	6.6
a. Mining & Quarrying	25,165	24,935	-0.9
b. Manufacturing	334,747	360,040	7.6
c. Construction	68,223	72,725	6.6
d. Elect,Gas and Water	56,305	58,723	4.3

GROSS VALUE ADDED in INDUSTRY
Annual 2007 and 2006
AT CURRENT AND CONSTANT 1985 PRICES, IN MILLION PESOS

INDUSTRY/ INDUSTRY GROUP	AT CURRENT PRICES			AT CONSTANT PRICES
INDUSTRY/ INDUSTRY GROUP	2006	2007	Growth Rate (%)	2006	2007	Growth Rate (%)
INDUSTRY SECTOR	1,913,031	2,107,287	10.2	415,985	445,486	7.1
a. Mining & Quarrying	75,557	108,173	43.2	18,813	23,678	25.9
b. Manufacturing	1,381,171	1,463,752	6.0	306,837	317,197	3.4
c. Construction	240,240	304,592	26.8	50,267	61,866	23.1
d. Elect,Gas and Water	216,062	230,771	6.8	40,068	42,745	6.7

Source: National Statistical Coordination Board (NSCB)

Posted 29 May 2008.