Imports down 9.6% in May

MANILA, Philippines - Imports declined 9.6 percent in May from a year ago, reversing the gains posted in the previous months, the Philippine Statistics Authority (PSA) said.

According to the PSA,  imports were valued at $4.765 billion in May, down from $5.272 billion posted  in the same month last year.

Socioeconomic planning chief Arsenio Balisacan attributed the year-on-year decrease in imports in May to the negative performance of mineral fuels and lubricants.

“The reversal in import payments for mineral fuels and lubricants in May 2014 from strong growth rates in the last two months significantly pulled down total imports. Moreover, sluggish importation of capital goods continued to weigh on imports during the period,” he said.

Inward shipments of mineral fuels, lubricants and related materials which amounted to $664.05 million in May fell 43.6 percent from the previous year’s $1.178 billion.

Electronic products, the top imported commodity for the month, also slid 1.2 percent to $1.265 billion in May from $1.280 billion in the same month a year ago.

Imports of cereals and cereal preparations also decelerated in May.

By country, China remained the main source of imports for the Philippines in May, accounting for a 15.2-percent share.

Payments for imports from China dropped 2.2 percent to $724.37 million in May from $740.91 million last year.

For the January to May period, total imports amounted to $26.336 billion, which went up 5.9 percent from $24.862 billion in the same period in 2013.

Balisacan said that while imports declined in May, a recovery is seen in the next two quarters based on the outlook and expansion plans of businesses as shown by surveys conducted by the Bangko Sentral ng Pilipinas.

The surveys revealed that the overall confidence index (CI) of businesses rose to 50.7 percent in the second quarter of 2014 from 37.8 percent in the first quarter and is expected to be sustained in the third quarter, with a CI of 48.9 percent.

“The refleeting program of airline companies in line with increasing their flight routes and the government’s continuing efforts to augment power supply and to improve operational capability in search and rescue operations and in maritime law enforcement, are likely to boost merchandise imports in the coming months,” Balisacan said.