NSCB - 3rd Quarter 2009 National Accounts

Third Quarter 2009
Gross National Product &
Gross Domestic Product by Expenditure Shares

Investments in Fixed Capital Formation declines

In spite of the growth of construction and BSODA, investments in Fixed Capital Formation in the third quarter of 2009 declined to 1.6 percent from a growth of 7.1 percent pulled down by decreased investments in Durable Equipment.

Investments in Construction sustains growth

Sustained public expenditure on capital outlay for Infrastructure investments by the government managed to maintain the growth of Public Construction from 23.4 percent to 22.2 percent growth resulting to a growth of Construction at 1.7 percent from 14.3 percent.

Private Construction which accounted for 57.1 percent of total Construction, on the hand, contracted by 9.7 percent from a growth from 9.8 percent.

Investments in Durable Equipment tumbles

Investments in Durable Equipment contracted to 5.7 percent from a growth of 1.0 percent a year ago as cutbacks in investments were recorded in fourteen (14) out of the twenty (20) types of equipment. The third quarter decline in the investment in durable equipment was the fourth consecutive decline recorded.

The biggest cuts in investments during the period were recorded in the following: Air Transport, negative 89.2 percent from 56.8 percent; Other Special Industrial Machinery, negative 26.5 percent from 5.8 percent; Other General Industrial Machinery, negative 25.6 percent from 17.2 percent; Office Machinery & Data Processing, negative 12.2 percent from negative 10.7 percent; and, Other Electrical Machinery and Apparatus, negative 24.5 percent from negative 12.6 percent.

On the other hand, increased investments were noted in the following: Road Vehicles, 49.1 percent from 5.1 percent; Other Miscellaneous Durable Equipment, 4.2 percent from 15.0 percent; Telecommunications and Sound Recording/Reproducing Equipment, 2.6 percent from negative 20.6 percent; Metal working Machineries, 7.3 percent from negative 42.3 percent; and, Agricultural Machineries, 2.1 percent from 15.5 percent.

Investments in Breeding Stocks, Orchard Development and Afforestation improves

Capital formation for the combined Breeding Stocks, Orchard Development and Afforestation for the third quarter of 2009 rebounded to a modest growth of 1.4 percent from negative 0.4 percent as expenditures in Orchard Development and Afforestation increased during the period.

Stocks falls

Total withdrawal in stocks for the third quarter of 2009 amounted to P 4,042 million compared to the P 1,995 million additions in the previous year. Additions in stocks for Establishments were not enough to supplant the significant withdrawals in stocks for Agriculture and Government.

GROSS DOMESTIC CAPITAL FORMATION BY TYPE
3rd Quarter 2008 and 3rd Quarter 2009
AT CURRENT PRICES, IN MILLION PESOS

TYPE OF EXPENDITURE	3rd Qtr 2008	3rd Qtr 2009	Growth Rate (%)
3. Capital Formation	292,707	251,873	-14.0
A. Fixed Capital	278,306	273,991	-1.6
1. Construction	154,074	156,031	1.3
2. Durable Equipment	101,623	95,107	-6.4
3. Breeding Stock & Orchard Dev't	22,609	22,852	1.1
B. Changes in Stocks	14,402	-22,118

GROSS DOMESTIC CAPITAL FORMATION BY TYPE
3rd Quarter 2008 and 3rd Quarter 2009
AT CONSTANT 1985 PRICES, IN MILLION PESOS

TYPE OF EXPENDITURE	3rd Qtr 2008	3rd Qtr 2009	Growth Rate (%)
3. Capital Formation	62,226	55,200	-11.3
A. Fixed Capital	60,231	59,242	-1.6
1. Construction	29,991	30488	1.7
2. Durable Equipment	27,096	25,565	-5.7
3. Breeding Stock & Orchard Dev't	3,143	3,189	1.4
B. Changes in Stocks	1,995	-4,042

GROSS DOMESTIC CAPITAL FORMATION BY TYPE
Annual 2008 and 2007
AT CURRENT AND CONSTANT 1985 PRICES, IN MILLION PESOS

TYPE OF EXPENDITURE	AT CURRENT PRICES			AT CONSTANT PRICES
TYPE OF EXPENDITURE	2007	2008	Growth Rate (%)	2007	2008	Growth Rate (%)
Capital Formation	1,022,446	1,131,490	10.7	252,018	256,244	1.7
A. Fixed Capital	977,240	1,089,728	11.5	241,107	248,094	2.9
1. Construction	516,415	597,189	15.6	112,420	117,551	4.6
2. Durable Equipment	381,935	390,557	2.3	111,412	113,536	1.9
3. Breeding Stock & Orchard Dev't	78,889	101,982	29.3	17,275	17,008	-1.5
B. Changes in Stocks	45,206	41,762		10,911	8,150

Source: National Statistical Coordination Board (NSCB)

Posted: 26 November 2009.