NSCB - 3rd Quarter 2008 National Accounts

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

Industry beats Services as the prime mover of the economy

Industry, which accounted for 30.3 percent of GDP, recorded a 7.0 percent growth from 6.6 percent last year, and contributed a significant 2.4 percentage points to total GDP growth. For the first time since the fourth quarter of 1997, Industry outperformed the Services Sector in its contribution to the total GDP growth.

The biggest contributors to growth of Industry were Manufacturing, Construction, and Electricity, Gas & Water.

M & Q loses luster

Mining and Quarrying declined by 4.1 percent from a substantial growth of 24.0 percent registered in the third quarter of 2007 as a result of weakened performances of the following sub sectors: Gold Mining, which plummeted to negative 22.1 percent from a growth of 37.5 percent; Other Metallic Minerals, down by 84.1 percent from a huge growth of 222.7 percent; Copper Mining, down by 8.6 percent from a growth of 31.3 percent; and, Chromium Mining which declined further to 76.0 percent from negative 34.0 percent.

The downslide of Mining and Quarrying was moderated by the growth of: Other Non-Metallic, which grew by 10.47 percent from 44.0 percent; Crude Oil, Natural Gas and Condensate, up by 4.6 percent from 3.0 percent; Nickel Mining which rebounded to 9.1 percent from negative 1.0 percent; and, Stone Quarrying, Clay and Sandpits, up by 2.3 percent from 13.3 percent.

Manufacturing accelerates

Manufacturing continued its upward trend with 4.7 percent growth from 3.7 percent a year ago.
Food Manufactures, with a share of 38.0 percent of the total manufacturing sector and the leading contributor to growth, grew by 14.4 percent from 3.9 percent. This was followed by Tobacco, which rebounded from negative 1.6 percent to 45.8 percent; Beverage, up by of 9.6 percent from 24.2 percent; Footwear and Wearing Apparel, which rebounded from negative 0.2 percent to 6.9 percent; and, Chemical and Chemical Products, up by 4.3 percent from negative 0.8 percent.

On the other hand, the following sub sectors pulled down the growth of manufacturing: Electrical Machinery, further which declined further by 7.2 percent from negative 3.0 percent; Petroleum Products, which slumped to 4.6 percent from a growth of 3.0 percent last year; Textile, which has been posting negative growths since the fourth quarter last year, skidding to negative 18.9 percent from a growth of 1.1 percent, Furniture and Fixture, down by 17.4 percent from a growth of 20.1 percent; and, Wood and Cork Production, down by 16.4 percent from a growth of 14.0 percent.

Public and Private construction posts double digit growth

Construction again posted a double-digit growth of 21.3 percent from 17.8 percent last year on account of the expansion in Private Construction by 13.8 percent from 19.5 percent. The growth was spurred by private construction investments in residential and non-residential infrastructures.

On the other hand, Public Construction expanded by 20.0 percent from 11.5 percent in 2007 due to the government’s pursuance of priority infrastructure projects.

EGW accelerates

Electricity, Gas and Water accelerated its growth from 8.4 percent last year to 9.7 percent.

The overall performance of EGW was largely attributed to Electricity, which accounted for 94.5 percent of EGW. Electricity increased by 10.0 percent from the previous year’s 8.5 percent mainly due to the lower cost of power purchased from the generators and stronger consumption from both commercial and industrial segments. Water, on the other hand, slowed down to 4.4 percent from last year’s 6.6 percent.

GROSS VALUE ADDED in INDUSTRY
3rd Quarter 2007 and 3rd Quarter 2008

At Constant 1985 Prices

INDUSTRY/INDUSTRY GROUP	3rd Qtr 2007	3rd Qtr 2008	Growth Rate (%)
INDUSTRY SECTOR	109,793	117,556	7.1
a. Mining & Quarrying	4,533	4,348	-4.1
b. Manufacturing	78,793	82,482	4.7
c. Construction	14,588	17,692	21.3
d. Elect,Gas and Water	11,879	13,033	9.7

At Current Prices

INDUSTRY/INDUSTRY GROUP	3rd Qtr 2007	3rd Qtr 2008	Growth Rate (%)
INDUSTRY SECTOR	512,244	603,276	17.8
a. Mining & Quarrying	24,153	27,485	13.8
b. Manufacturing	360,978	425,374	17.8
c. Construction	70,628	93,702	32.7
d. Elect,Gas and Water	56,484	56,715	0.4

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 27 November 2008.