Factory output rises 22.2%

MANILA, Philippines - The country’s manufacturing output expanded 22.2 percent in October, the fastest seen in more than two years, as increases were seen in major sectors, the National Statistics Office (NSO) said.

The NSO’s Monthly Integrated Survey of Selected Industries released yesterday showed factory output in October, as measured by the Volume of Production Index expanded at a faster pace than the 8.6 percent growth posted in September.

The October result was also the highest growth seen since manufacturing output grew 15.7 percent in September 2010.

The NSO said the October result was due to “high production outputs... reported by seven out of 13 major sectors led by footwear and wearing apparel, registering a three-digit increase of 128.9 percent.”

Other major sectors with two-digit increases were observed in the following: electrical machinery (75.2 percent), basic metals (33.8 percent), food manufacturing (19.4 percent), wood and wood products (15.5 percent), transport equipment (13.5 percent) and machinery except electrical (12.3 percent).

The NSO said the Value of Production Index also grew at a faster rate of 18.9 percent in October compared with the revised 7.4 percent expansion in September.

“Significant expansion in value of production was exhibited by footwear and wearing apparel with a three-digit increase of 120.7 percent, followed by four other major sectors that posted two-digit increments, namely: electrical machinery (56.6 percent), basic metals (26.3 percent), food manufacturing (25.4 percent) and transport equipment (14.7 percent),” the NSO said.

The Value of Net Sales Index, the NSO noted, posted an annual increment of 7.1 percent in October from the previous month’s three percent growth.

The higher sales value was due to increases in major sectors such as footwear and wearing apparel (126.9 percent); beverages (56.8 percent), non-metallic mineral products (50.9 percent), electrical machinery (34 percent), publishing and printing (30.6 percent) and food manufacturing (11.1 percent).

The Volume of Net Sales Index also continued its positive growth in October, as it expanded 10.1 percent from September’s revised growth of 4.1 percent.

Footwear and wearing apparel contributed significantly to the increase as it posted a 135.3 percent growth.

Other contributors to the higher volume of net sales were beverages (56.7 percent), non-metallic mineral products (51.6 percent), electrical machinery (49.9 percent), publishing and printing (23.1 percent), wood and wood products (18.1 percent) and machinery except electrical (15.2 percent).

The average capacity utilization of factories in October was at 83.4 percent.