Factory output growth rises faster

Preliminary results of the Monthly Integrated Survey of Selected Industries released by the Philippine Statistics Authority (PSA) yesterday showed the Volume of Production Index (VoPI) for manufacturing registered a 1.9 percent growth last November, faster than the 1.5 percent increase in October last year.
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MANILA, Philippines — The country posted higher manufacturing output growth in November from the previous month, driven by improvements in the beverage, transport equipment and chemical industry divisions.

Preliminary results of the Monthly Integrated Survey of Selected Industries released by the Philippine Statistics Authority (PSA) yesterday showed the Volume of Production Index (VoPI) for manufacturing registered a 1.9 percent growth last November, faster than the 1.5 percent increase in October last year.

The VoPI growth, however, was lower than the 6.4 percent uptick in the same month in 2022.

The PSA attributed the faster VoPI growth in November from the previous month to the performance of three industry divisions.

The manufacture of beverages posted a smaller decline of 11.6 percent in November from the 34.4 percent drop in October.

Transport equipment, meanwhile, registered a higher growth rate of 17.1 percent in November from the previous month’s 5.8 percent growth.

Chemical and chemical products exhibited a 2.4 percent decline in November, lower than the 10.9 percent contraction in October.

The Value of Production Index (VaPI) also expanded at a quicker pace of 2.2 percent.

The November VaPI growth, however, is slower than the 13.2 percent increase in the same month in 2022.

Growth in VaPI was driven mainly by the slower decline in the beverages industry division at 1.4 percent from the 26.9 percent drop in October.

Based on responding establishments, the PSA said the average capacity utilization rate for manufacturing in November 2023 was at 74.8 percent from 74.3 percent in October 2023.

“All industry divisions reported capacity utilization rates of more than 60 percent during the month,” the PSA said.

It said the top three industry divisions in terms of reported capacity utilization rate were machinery and equipment except electrical (80.8 percent), transport equipment (80.8 percent), and rubber and plastic products (79.9 percent).

It also said 24.2 percent of the responding establishments operated at full capacity (90 to 100 percent) in November.

Meanwhile, 41.5 percent operated at 70 to 89 percent capacity, and 34.4 percent at below 70 percent capacity.

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