Output of Philippine Factories and Manufacturers

Output of Philippine factories slowed down in July as manufacturers’ capacity remains unchanged, the National Statistics Office (NSO) said.

NSO said the country’s manufacturing output went up by 22.9 percent in July, lower than the revised 24.7 percent in June.

A year ago, factory output contracted by 15 percent.

The agency attributed the growth to the two-digit increases in machinery except electrical, electrical machinery, miscellaneous manufactures, transport equipment, leather products, non-metallic mineral products, beverages, basic metals, petroleum products, textiles, rubber and plastic products and fabricated metal products.

The country’s volume of production index (VoPI), on a month-on-month comparison, posted an increase of 1.8 percent in July.

The NSO said 17 percent of the 100 manufacturing firms surveyed operated at full capacity in July.

The average capacity utilization of these factories stood at 83.1 percent.

The NSO said sectors that posted more than 80 percent capacity utilization rates were basic metals, food manufacturing, petroleum products, electrical machinery, machinery except electrical, non-metallic mineral products, paper and paper products, miscellaneous manufactures, chemical products, rubber and plastic products and leather products.

More than half or 61.2 percent of the establishments operated at 70- to 89-percent capacity and 21.8 percent of the establishments operated below 70-percent capacity.

The value of production index (VaPI) grew 16 percent in July from 18.8 percent contraction in the same period last year.

VaPI, on a month-on-month basis, maintained its positive growth with an increment of 1.7 percent in July.

In addition, the value of net sales index (VaNSI) sustained a year-on-year growth as it posted 10.6 percent increase in July.

This was accounted for by 14 major sectors with two-digit increases in sales value exhibited by the following: leather products, miscellaneous manufactures, fabricated metal products, beverages, transport equipment, machinery except electrical, petroleum products, electrical machinery, wood and wood products, textiles and paper and paper products.

On a monthly basis, however, VaNSI slid by 5.3 percent in July due to decreases in nine major sectors, offsetting the increases reported by 11 major sectors. (PNA)

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