Factory output growth accelerates in August

MANILA, Philippines —  The country’s manufacturing output expanded at a faster pace in August from the previous month, driven by electronic products and transport equipment, the Philippine Statistics Authority (PSA) said.

Preliminary results of the PSA’s Monthly Integrated Survey of Selected Industries showed that the Volume of Production Index (VoPI) for manufacturing recorded a faster annual increase of 11.8 percent in August from 6.7 percent in July.

The August VoPI growth was also much faster than the 1.3-percent uptick posted in August last year.

The PSA attributed the faster growth to the production of the following: computer, electronic and optical products; transport equipment; and basic metals.

In particular, manufacture of computer, electronic and optical products posted a faster increase of 32.1 percent in August from 9.2 percent in July.

Transport equipment production also saw a faster growth of 11.4 percent in August from the previous month’s 2.1 percent.

Manufacture of basic metals likewise posted a higher increase of 29 percent in August from 17.4 percent in the previous month.

Of the remaining 19 industry divisions, 15 posted annual increases in August. These include coke and refined petroleum products; food products; rubber and plastic products; beverages; electrical equipment; leather and related products, including footwear; furniture; wood, bamboo, cane, rattan articles and related products; paper and paper products; wearing apparel; basic pharmaceutical products and pharmaceutical preparations; tobacco products; other manufacturing and repair and installation of machinery and equipment; textiles; and printing and reproduction of recorded media.

Meanwhile, those that saw declines in August are fabricated metal products; other non-metallic mineral products; chemicals and chemical products; and machinery and equipment.

The PSA said the average capacity utilization rate for manufacturing was at 78.7 percent in August, slightly lower than the previous month’s 78.8 percent.

“All industry divisions reported capacity utilization rates of more than 65 percent during the month,” the PSA said.

The top three divisions in terms of reported capacity utilization rate in August were manufacture of tobacco products (85 percent); coke and refined petroleum products (83.9 percent); and computer, electronic and optical products (83.3 percent).

Of the responding establishments, 36 percent operated at full capacity or at 90 to 100 percent in August.

Around 40 operated at 70 to 89 percent capacity and 24 percent were at below 70 percent capacity.