Factory output expands at slower pace in March

MANILA, Philippines — The country’s manufacturing output posted slower growth in March due mainly to the weaker performance of the beverage, chemicals, and basic metal sectors, the Philippine Statistics Authority (PSA) said.

Preliminary results of the PSA’s Monthly Integrated Survey of Selected Industries showed the Volume of Production Index (VoPI) for manufacturing posted a 2.2 percent growth in March this year, slower than the 5.2 percent uptick in February this year, and the 346.2 percent increase in March last year.

The PSA attributed the slower growth of VoPI mainly to three industry divisions: beverages; chemical and chemical products; and basic metals.

In particular, beverages posted a slower growth of 4.9 percent in March from 20.9 percent in February.

Chemical and chemical products registered a faster negative growth rate of 25.5 percent in March from the 7.8 percent contraction in the previous month.

Basic metals grew by 18.6 percent in March, slower than the 28.1 percent increase in February.

Also contributing to the lower growth of VoPI are industry divisions that posted slower growth rates in March compared to February, such as transport equipment; other manufacturing and repair and installation of machinery and equipment; food products; electrical equipment; printing and reproduction of recorded media; and basic pharmaceutical products and pharmaceutical preparations.

Those which posted faster negative growth rates in March compared to February were wearing apparel; furniture; tobacco products; machinery and equipment except electrical; rubber and plastic products; leather and related products, including footwear; fabricated metal products except machinery and equipment; and wood, bamboo, cane, rattan articles and related products.

PSA data also showed the Value of Production Index (VaPI) for manufacturing posted a slower growth rate of 4.9 percent in March this year from nine percent in February and 370.3 percent in March last year.

The PSA said the beverages, chemical and chemical products, and basic metals were also the top three industry divisions that contributed to the slower growth of VaPI in March.

Based on responding establishments, the average capacity utilization rate for manufacturing was at 73 percent in March from 72.7 percent in February.

“All industry divisions reported capacity utilization rates of more than 50 percent during the month,” the PSA said.

Industry divisions with the highest reported capacity utilization rate in March were machinery and equipment except electrical (82 percent), transport equipment (81.8 percent), and rubber and plastic products (77.6 percent).

Of the total number of responding establishments, the PSA said 21.7 percent operated at full capacity or at 90 to 100 percent.

Meanwhile, 38 percent operated at 70 to 89 percent capacity, and 40.3 percent operated below 70 percent capacity.