Fixed Capital Formation falls

Investments in Fixed Capital Formation went down by 1.6 percent growth from last year’s meager growth of 0.1 percent as a result of poor investments in all of its sub sectors.

Investments in Construction slumped to 2.9 percent from a growth of 8.2 percent as Public Construction slid further to negative 7.2 percent from negative 1.2 while Private Construction reversed its growth of 15.4 percent to negative 0.1 percent.

Investments in Durable Equipment dropped by, albeit lower, 0.1 percent from negative 7.9 percent growth posted in 2008. Decreased investments were registered in twelve (12) out of the twenty (20) types of fixed asset investments.

The biggest declines during the quarter were posted by: Air Transport, declined by 83.9 percent from a growth of 14.9 percent; Other Special Industrial Machineries, down by 29.7 percent from negative 11.4 percent; Other General Industrial Machineries, further slumped to 13.3 percent from negative 7.9 percent; Aircon and Refrigeration Equipment, down by 25.9 percent from negative 15.2 percent; and Mining, Construction Machineries, negative 25.5 percent from a growth 1.9 percent.

On the other hand, the following sub sectors posted positive growths in investments:  Road Vehicles, which rebounded to 25.7 percent from negative 14.0 percent; Telecommunications & Sound Recording/Reproducing Equipment, up by 23.8 percent from negative 16.8 percent; Other Miscellaneous Durable Equipment, grew by 1.6 percent from 8.8 percent; Water Transport, 46.9 percent from negative 22.0 percent; and, Textile Machineries, 6.4 percent from 37.4 percent.

Capital formation for the combined Breeding Stocks, Orchard Development and Afforestation for the fourth quarter of 2009 declined by 2.0 percent from a growth of 1.2 percent in 2008 as expenditures on Orchard Development and Breeding stocks decreased during the period.

Total withdrawal in stocks for the fourth quarter of 2009 amounted to P 276.2 million, a lower withdrawal as compared to P 721.5 in 2008.  Additions in stocks for agriculture were not enough to supplant the significant withdrawals in stocks for Establishment and Crude & Petroleum.

GROSS DOMESTIC CAPITAL FORMATION BY TYPE
4th Quarter 2008 and 4th Quarter 2009
AT CURRENT PRICES, IN MILLION PESOS

GROSS DOMESTIC CAPITAL FORMATION BY TYPE
4th Quarter 2008 and 4th Quarter 2009
AT CONSTANT 1985 PRICES, IN MILLION PESOS

GROSS DOMESTIC CAPITAL FORMATION BY TYPE
Annual 2008 and 2009
AT CURRENT AND CONSTANT 1985 PRICES, IN MILLION PESOS

 

Source: National Statistical Coordination Board (NSCB)

Posted: 28 January 2010.