Manufacturing output slides in May

MANILA, Philippines — Factory production contracted in May, the country’s statistics agency reported Friday, with the government calling for “stronger push” for policies to bolster manufacturing growth.

Manufacturing output—as measured by the Volume of Production Index—declined 4% year-on-year in May.

The latest reading was lower than the revised 14.3% drop recorded in April and was a reversal from 13% growth registered a year ago.

In a statement, Socioeconomic Planning Secretary Ernesto Pernia said the government needs “measures to boost the productivity of agriculture and strengthen supply chain linkages between local and foreign producers of raw food products and food manufacturers to increase food production.”

“Food products, the largest subsector, has significant impact on the overall performance of the manufacturing sector,” Pernia said.

“The government’s rice farm mechanization program should be seamlessly implemented. This will make rice farming more efficient and productive. It will also drive up the demand for farm equipment, thereby improving manufacturing industry and create more jobs for Filipinos,” he added. — Ian Nicolas Cigaral