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Business

Factory output likely slowed in Nov

Lawrence Agcaoili - The Philippine Star
Factory output likely slowed in Nov
Moody’s Analytics said Philippine industrial production growth likely eased to eight percent in November from 8.4 percent in October amid the slow down in food production.
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MANILA, Philippines – The country’s factory output was likely affected by the series of typhoons that battered several provinces including Metro Manila toward the end of last year, a unit of Moody’s Corp. said.

Moody’s Analytics said Philippine industrial production growth likely eased to eight percent in November from 8.4 percent in October amid the slow down in food production.

“Food production will likely slow in the short term due to the negative impact that Typhoon Lawin had on agriculture,” it said.

Typhoon Lawin brought heavy rains with strong winds over parts of Northern Luzon late October while an equally strong Typhoon Nina battered the Bicol region last month.

“Despite this, the overall outlook for Philippine manufacturing remains positive. Higher external demand is boosting electronics production, while rapid growth in domestic demand will support production as a whole,” Moody’s Analytics said.

In the Philippine Statistics Authority’s Monthly Integrated Survey of Selected Industries for October 2016, the Volume of Production Index (VoPI) grew 8.4 percent, a marked improvement from the 1.5 percent growth recorded in October 2015.

On the other hand, the Value of Production Index (VaPI) also grew 4.3 percent—a turnaround from the 6.2-percent decline in the same period last year.

Socioeconomic Planning Secretary Ernesto Pernia earlier said manufacturing output continued its rapid growth due to higher production of petroleum products, non-electrical machineries, and transport equipment.

“In order to support the manufacturing sector’s continued growth, the government efforts to improve the business climate must be sustained,” he said

The National Economic and Development Authority (NEDA) said the sector is expected to benefit from the industrial strategy of the Department of Trade and Industry that would focus on industries with potential to generate employment and encourage entrepreneurship.

“With the Duterte administration’s commitment to fast-track implementation of infrastructure projects and programs, construction-related manufactures will be a major contributor to the growth of the sector,” NEDA said.

NEDA said better infrastructure in the future would further stimulate the expansion of the manufacturing sector, as well as more easily connect producers to the value chain, and then to local and international markets.

“To raise the local industries’ competitiveness in the increasingly integrated global economy, we need to increase both public and private investments in R&D. This will surely help in the exploration and development of new products, processes, and markets,” NEDA said.

MOODY’S ANALYTICS SAID PHILIPPINE

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