MANILA — The country’s manufacturing output and value posted double-digit growth in February, the Philippine Statistics Authority (PSA) reported Thursday.
In its Monthly Integrated Survey of Selected Industries (MISSI) for February 2018, volume of production index (VoPi) increased to 24.8 percent from 9.8 percent in the same month last year.
The growth was driven by increments in 16 major sectors led by printing which surged 108.1 percent last month.
Double-digit growth was likewise posted in other major sectors such as food manufacturing, up 32.6 percent; electrical machinery, up 30.3 percent; beverages, up 24.1 percent; petroleum products, up 23.4 percent; miscellaneous manufactures, up 20.5 percent; leather products, up 14.4 percent; fabricated metal products, up 12.6 percent; chemical products, up 11.1 percent; and machinery except electrical, up 10.4 percent.
“The increasing working-age population, rising productivity, improvement in business environment, and aggressive infrastructure development will also help spur growth in the sector,” said National Economic and Development Authority (NEDA) Officer-in-Charge (OIC) and Undersecretary for Policy and Planning Rosemarie Edillon.
Moreover, value of production index (VaPi) accelerated to 23.6 percent in February this year from 8.3 percent growth in February 2017, with growth also led by printing sector at 103.9 percent.
Nine other major sectors registered double-digit growth, which include electrical machinery at 33.2 percent; food manufacturing at 30.2 percent; petroleum products at 28.2 percent; beverages at 26.3 percent; miscellaneous manufacturers at 21 percent; basic metals at 17 percent; paper and paper products at 13.7 percent; non-metallic mineral products at 13.6 percent; and machinery except electrical at 10.5 percent.
The average capacity utilization rate of manufacturing facilities last month was at 84.2 percent, as 55 percent or 11 out of 20 major industries operated at 80 percent and above capacity utilization rate.
Industries with capacity utilization rate of 80 percent and above include petroleum products at 89.6 percent; basic metals at 89 percent; non-metallic mineral products at 86.8 percent; machinery except electrical at 85.9 percent; food manufacturing at 85.5 percent; electrical machinery at 85 percent; chemical products at 84.5 percent; paper and paper products at 83.5 percent; rubber and plastic products at 82.9 percent; wood and wood products at 81.3 percent; and printing at 81.2 percent.
Meanwhile, only 18.5 percent of manufacturing facilities operated below 70 percent of their capacity.
Edillon said NEDA’s outlook for the country’s manufacturing sector is bright. “The industries’ outlook for both the current and succeeding quarters remains bullish with the expectation of sustained robust demand, improvement in production capacity, new product lines, and enhanced marketing strategies,” she said.
“However, risks to growth remain. The government must remain cautious of increasing inflation which may lead to higher cost of production for manufacturing firms. Strategies are needed to be pursued to sustain the upward growth trajectory of the manufacturing sector,” she added.
In its Monthly Integrated Survey of Selected Industries (MISSI) for February 2018, volume of production index (VoPi) increased to 24.8 percent from 9.8 percent in the same month last year.
The growth was driven by increments in 16 major sectors led by printing which surged 108.1 percent last month.
Double-digit growth was likewise posted in other major sectors such as food manufacturing, up 32.6 percent; electrical machinery, up 30.3 percent; beverages, up 24.1 percent; petroleum products, up 23.4 percent; miscellaneous manufactures, up 20.5 percent; leather products, up 14.4 percent; fabricated metal products, up 12.6 percent; chemical products, up 11.1 percent; and machinery except electrical, up 10.4 percent.
“The increasing working-age population, rising productivity, improvement in business environment, and aggressive infrastructure development will also help spur growth in the sector,” said National Economic and Development Authority (NEDA) Officer-in-Charge (OIC) and Undersecretary for Policy and Planning Rosemarie Edillon.
Moreover, value of production index (VaPi) accelerated to 23.6 percent in February this year from 8.3 percent growth in February 2017, with growth also led by printing sector at 103.9 percent.
Nine other major sectors registered double-digit growth, which include electrical machinery at 33.2 percent; food manufacturing at 30.2 percent; petroleum products at 28.2 percent; beverages at 26.3 percent; miscellaneous manufacturers at 21 percent; basic metals at 17 percent; paper and paper products at 13.7 percent; non-metallic mineral products at 13.6 percent; and machinery except electrical at 10.5 percent.
The average capacity utilization rate of manufacturing facilities last month was at 84.2 percent, as 55 percent or 11 out of 20 major industries operated at 80 percent and above capacity utilization rate.
Industries with capacity utilization rate of 80 percent and above include petroleum products at 89.6 percent; basic metals at 89 percent; non-metallic mineral products at 86.8 percent; machinery except electrical at 85.9 percent; food manufacturing at 85.5 percent; electrical machinery at 85 percent; chemical products at 84.5 percent; paper and paper products at 83.5 percent; rubber and plastic products at 82.9 percent; wood and wood products at 81.3 percent; and printing at 81.2 percent.
Meanwhile, only 18.5 percent of manufacturing facilities operated below 70 percent of their capacity.
Edillon said NEDA’s outlook for the country’s manufacturing sector is bright. “The industries’ outlook for both the current and succeeding quarters remains bullish with the expectation of sustained robust demand, improvement in production capacity, new product lines, and enhanced marketing strategies,” she said.
“However, risks to growth remain. The government must remain cautious of increasing inflation which may lead to higher cost of production for manufacturing firms. Strategies are needed to be pursued to sustain the upward growth trajectory of the manufacturing sector,” she added.
Among these initiatives include innovation in manufacturing and manufacturing-related services and enhancing the capacity of micro, small, and medium enterprises, Edillon explained.
“We need these initiatives to produce raw materials and intermediate goods that meet the requirements of international markets. We also need to pursue bureaucratic and regulatory reforms that incentivize compliance across all levels of government to eliminate red tape and reduce the cost of doing business,” she added. (Kris Crismundo/PNA)
