Factory activity heightens in July

MANILA, Philippines — Philippine manufacturing output went up in July from the previous month, as 14 industry groups registered positive annual growths, the Philippine Statistics Authority (PSA) said.

The Monthly Integrated Survey of Selected Industries released by the PSA yesterday showed the country’s factory output as measured by the Volume of Production Index (VoPI) expanded at an annual rate of 2.5 percent in July, up from June’s 0.7 percent.

Compared to the 534.4 percent in July last year, the latest VoPi is much lower.

“Out of the 22 industry divisions, 14 reported positive annual growths which was led by manufacture of fabricated metal products, except machinery and equipment with 30.3 percent annual growth rate,” the PSA said.

Other industry groups with positive annual upticks in July are food products; transport equipment; fabricated metal products except machinery and equipment; beverages;  machinery and equipment except electrical; paper and paper products; computer, electronic, and optical products; wood, bamboo, cane, rattan articles and related products; printing and reproduction of recorded media; other manufacturing and repair and installation of machinery and equipment; textiles; leather and related products including footwear; rubber and plastic products; and wearing apparel.

Meanwhile, eight industry divisions posted annual decreases with manufacture of electrical equipment having the biggest drop of -52.7 percent.

Other industry groups which registered annual declines were basic metals; tobacco products; basic pharmaceutical products and pharmaceutical preparations; chemical and chemical products; furniture; other non-metallic mineral products; and coke and refined petroleum products.

The Value of Production Index (VaPI) went up at a faster rate of 10.6 percent in July from  8.3 percent in June.

July’s VaPI, however, was way lower than the 529.9 percent growth rate in the same month last year.

Contributing to the VaPI’s upturn in July were the annual growths in 17 industry divisions with the manufacture of machinery and equipment except electrical posting the highest annual uptick of 32.1 percent.

Five industry divisions, on the other hand, reported declines, with the manufacture of electrical equipment registering the biggest annual decline of -51.2 percent.

PSA said the average capacity utilization rate for manufacturing was at 71.3 percent in July from 71.2 percent in June.

“There were 20 out of 22 industry divisions with more than 60 percent average capacity utilization rate, led by manufacture of furniture (80.7 percent), manufacture of computer, electronic, and optical products (80.2 percent), and manufacture of wearing apparel (80 percent),” PSA said.

It said 26.2 percent of the total responding establishments operated at full capacity or at 90 percent to 100 percent.

Meanwhile, 37.4 percent operated at 70 to 89 percent capacity, while 36.5 percent operated below 70 percent capacity.