Factory output expands in Feb.

MANILA, Philippines - Domestic manufacturing grew at a slower pace in February, supported by increased production of petroleum products, food, basic metals and transport equipment, the Philippine Statistics Authority (PSA) reported yesterday.

Factory output, as measured by the Volume of Production Index (VoPI) for manufacturing, grew 10.7 percent in February, slightly slower than the 11.6 percent growth in February 2016.

Other goods that increased production during the reference period were furniture and fixtures, wood and wood products, chemical products and leather products.

Production value, as measured by the Value of Production Index (VaPI), expanded at a faster pace of 13.6 percent in February, higher than the 5.4 percent in the same month last year.

For consumer goods, furniture and fixtures posted a double-digit growth of 21.9 percent in volume and 16.6 percent in value of production, while food manufactures grew in volume and value of production by 20.6 and 19.3 percent, respectively.

For intermediate goods, petroleum products registered growth of 47.1 percent in volume and 95 percent in value, reversing the contractions last year.

Production of wood and wood products rose 19.5 percent and 21.2 percent in volume and value of production, while non-metallic mineral products grew 26.3 percent and 20 percent in volume and value respectively.

Socioeconomic Planning Secretary Ernesto Pernia said there is a need to strengthen the domestic manufacturing sector to enable it to meet the demand for increased consumption and higher spending on infrastructure.

“The sector is expected to benefit from an investment-led growth supported by stable inflation, increased spending on infrastructure and rural development, strong private consumption, and continued gains in overseas remittances,” he said.