Mfg output grows double digit in Dec

MANILA, Philippines -  Domestic manufacturing registered double-digit growth in both value and output in December due to increased production of petroleum products, food manufactures and transport equipment, the Philippine Statistics Authority reported yesterday.

The volume of production index for manufacturing grew at a faster pace of 23 percent from five percent in the same period in 2015.

Likewise, the value of production index for manufacturing grew 19.4 percent in December, reversing the 2.7-percent decline in December 2015.

This resulted in a full-year growth in manufacturing volume to 14.4 percent for 2016 from 2.5 percent in 2015.

Socioeconomic Planning Secretary Ernesto Pernia said increased purchase in capital and durable goods indicate optimism among businesses.

“The manufacturing sector is performing very well. Increases in the purchases of capital and durable goods contributed to the increase and further indicates that there is business and consumer confidence in the domestic economy,” he said.

Transport equipment recorded growth in production volume and value of 34.3 percent and 35.6 percent, respectively, in December 2016. 

Growth in production of construction-related manufactures also sustained the upward trend, primarily the result of increased demand for both residential and non-residential buildings.

For December 2016, food manufacturing grew 35.1 percent, the highest since 2013. Value of production of the food subsector also increased 37.7 percent, driven mainly by domestic demand during the holiday season and higher production value of vegetable oil and animal fats.

For intermediate goods, the petroleum subsector posted a production volume growth of 63.2 percent for December 2016, reversing the 34.2 percent decline in 2015.

In December, factories operated at the average capacity utilization rate of 83.9 percent with production facilities for petroleum products operating at the highest capacity rate of 88.8 percent.

Despite the robust growth in the manufacturing sector, Pernia said the sector must be capacitated to provide stable and quality jobs.

“We must further encourage the expansion of the capacity of existing firms, entry of new ones and facilitate linkages across firms and sectors.  The use of science, technology and innovation must also be promoted.  We must also enhance the competencies of our labor force to produce high-quality and competitive products,” he said.