Factory output posts slower growth

MANILA, Philippines — The country’s manufacturing output sustained its three-digit gains for six consecutive months, although at a slower pace in September as base effects are starting to wane.

Factory output, as measured by the Volume of Production Index (VoPI), went up 124 percent in September, significantly lower than the 534 percent hike in August, but way better than the 56.7 percent contraction in September 2020.

The Philippine Statistics Authority (PSA) attributed the upturn in VoPI to the growth of 13 industry divisions led by the manufacture of coke and refined petroleum products, which swelled over 700 percent. However, this is much slower than the nearly 4,000 percent increase the month before.

The surge in manufacturing over the past six months is starting to slowly dwindle as base effects fade. During the last months of 2020, the economy started to open up, prompting huge leaps in manufacturing.

In the same period this year, strict mobility curbs were eased as COVID-19 cases have dropped to their lowest levels in months, allowing business activities and the economy to function normally.

Thirteen out of the 22 industry groups covered by the index registered growth during the month, led by the manufacture of coke and refined petroleum products at 739.7 percent.

The manufacture of fabricated metal products except machinery and equipment also posted triple-digit gains at 182.5 percent.

Most industry groups posted double-digit increases including wood, bamboo, cane, rattan articles and related products (49 percent), furniture (45 percent), computer, electronic and optical products (43 percent), electrical equipment (38 percent), non-metallic mineral products (30 percent), and basic metals (11 percent).

Other gainers also include food products, paper and paper products, textiles, leather products, and machinery and equipment.

Contractions, meanwhile, were also recorded, led by tobacco products at 52.8 percent.

Other declines were in basic pharmaceutical products and preparations, printing and reproduction of recorded media, transport equipment, rubber and plastic products, chemical products, beverages, and wearing apparel.

The growth of the Value of Production Index (VaPI) likewise slowed to 122.7 percent in September from 527 percent in August. But it contracted 59 percent same period last year.

Further, capacity utilization on the average increased to 66.5 percent from 66.2 percent as restrictions were eased during the month.

Twenty of the 22 industry groups had at least 50 percent average capacity utilization rate, led by the manufacture of furniture, other non-metallic mineral products, and tobacco products.

Less than a quarter or 23.1 percent of responding establishments operated at full capacity.