Factory output rises at faster pace in July  

MANILA, Philippines — Philippine manufacturing output expanded at a faster rate in July, driven by increases in production in the food, beverage and refined petroleum industries, according to the Philippine Statistics Authority (PSA).

Preliminary results of the Monthly Integrated Survey of Selected Industries released by the PSA yesterday showed the Volume of Production Index (VoPI) grew by 5.7 percent  in July,  faster than the 3.4 percent increase in the previous month and the 3.6 percent uptick in July 2022.

The PSA attributed the higher VoPI growth to the increase in three industry divisions: beverages, coke and refined petroleum products, and food.

In particular, production of beverages registered 12.6 percent growth in July from the -11.4 percent decline in June.

Coke and refined petroleum products posted a higher increase of 36.2 percent in July from 15.9 percent in the previous month.

Food products saw a 1.2 percent growth in July from the -3.1 percent decline in June.

The  Value of Production Index (VaPI) also picked up at a faster pace of 5.7 percent in July from 4.2 percent in the previous month.

The latest reading, however, was lower than the 12.1 percent growth in July last year.

Driving the higher growth in VaPI was the beverages industry division, which grew by 22.6 percent in July from an annual drop of -2.7 percent in June.

Other main contributors to the higher VaPI growth in July were coke and refined petroleum products with a 26.6 percent increase during the period from seven percent in the previous month, and food products with an annual growth rate of 3.1 percent in July from an annual decline of -0.3 percent in June.

PSA said the average capacity utilization rate for manufacturing was at 73.5 percent in July from 73.3 percent in the previous month.

“The top three industry divisions in terms of reported capacity utilization rate were manufacture of computer, electronic and optical products (81 percent), manufacture of rubber and plastic products (80.7 percent), and products manufacture of machinery and equipment except electrical (80.4 percent),” the PSA said.

It said 27.8 percent of responding establishments operated at full capacity or 90 to 100 percent.

Meanwhile, 37.3 percent operated at 70 to 89 percent capacity while 34.9 percent operated below 70 percent capacity.