Industries off to a slow start in Q2

MANILA, Philippines — Industries took it slow at the beginning of second quarter, recording multi-year slowdown in manufacturing and shipments in and out of the country in April, the Philippine Statistics Authority reported on Friday.

 

Specifically, both merchandise imports and manufacturing output slowed down to their lowest level in 16 months. Exports likewise recorded a slower performance.

 

Imports inched down 0.1 percent to $6.86 billion, its first contraction in 16 months or since the 25.8-percent drop in December 2015. 

 

Exports, on the other hand, rose 12.1 percent to $4.81 billion, slower than the previous month, data showed.

 

 

Raw materials from imports are usually used to produce final products locally and vice-versa. Inputs to local produce are then processed in factories, operations of which provide jobs.

 

Mimicking the slowdown in shipments, the volume of production index (VoPI)—a measure of manufacturing output—posted a slower growth of 5.9 percent, also a 16-month low.

 

"Despite the slowdown at the onset of the second quarter, manufacturing output is expected to sustain its growth following anticipated increases in demand during the harvest season and the enrollment period in schools,” Socioeconomic Planning Secretary Ernesto Pernia said in a statement. 

 

Manufacturing and trade were among the key drivers of the economy in the first quarter when it grew 6.4 percent.

 

 

The figure, while still among Southeast Asia's strongest, was slower than last year's 6.9 percent and fell below most expectations.

 

Economic managers are scheduled to review the government's macroeconomic assumptions on Friday at 3 p.m.

 

Budget Secretary Benjamin Diokno earlier said it is likely that growth target of 6.5 to 7.5 percent this year will be retained.