Volume, value sustain expansion
MANILA, Philippines — Domestic manufacturing sustained its robust expansion in June although it grew at a slower pace as production volume of construction-related manufactures eased, the Philippine Statistics Authority (PSA) reported yesterday.
Factory output, as measured by the Volume of Production Index (VoPI), grew 18 percent in June, reversing the 0.1 percent contraction in June 2017 but was slower than the 19.8 percent growth in May. Increased output were seen for petroleum products, textiles, rubber and plastic products, machinery, food manufacturing and beverages.
In terms of value, the Value of Production Index (VaPI) for manufacturing grew 18.9 percent in June, likewise a turnaround from the 2.1 percent contruction in June 2017, but was slower than the growth rate of 21.3 percent in May.
In June, factories operated at an average capacity utilization rate of 84.3 percent. Sixty percent or 12 of the 20 major industries operated at 80 percent and above capacity utilization rates.
These were: petroleum products, basic metals, non-metallic mineral products, machinery except electrical, food manufacturing, electrical machinery, chemical products, paper and paper products, rubber and plastic products, printing, wood and wood products, and textiles.
The National Economic and Development Authority (NEDA) said the manufacturing sector is expected to sustain double-digit growth in the coming months.
NEDA noted, however, that “growth in the production volume of construction-related manufactures eased in June.”
“Robust domestic and higher external demand, increased investments and OFW remittances, improved consumer confidence, and stable business confidence backed this growth in manufacturing,” said Socioeconomic Planning Secretary and NEDA chief Ernesto Pernia.
“The prospect for the second half of the year is bright. We hope to further climb this upward trajectory as we implement reforms positively affecting the industries and doing business in the country,” he added.
He said the Inclusive, Innovation-led, Industrial Strategy, the Ease of Doing Business and Efficient Government Service Delivery Act, and completion of ongoing infrastructure projects are expected to also contribute to the growth of major industries.
“To further drive manufacturing growth, local government units can be capacitated more to attract investments in manufacturing and manufacturing-related services outside Metro Manila,” Pernia said.