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The manufacturing sector contracted in both volume and value in the first month of 2021, recording its 11th straight month of decline
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The Volume of Production Index dropped 16.7% while the Value of Production Index went down 21.1%, both indices declining faster than in December 2020
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Manufacturing had an average capacity utilization rate of 46.1% in January, down from 49.1% in December 2020
The Philippine manufacturing sector contracted in both volume and value in the first month of 2021, recording its 11th straight month of decline, according to data from the Philippine Statistics Authority (PSA).
The Volume of Production Index (VoPI) dropped 16.7% in January 2021, faster than the 12% decline registered in December 2020, according to PSA’s latest Monthly Integrated Survey of Selected Industries.
The faster downturn in VoPI was brought about by the annual decreases in 18 industry divisions led by manufacture of wood, bamboo, cane, rattan articles and related products (-53.4%), manufacture of machinery and equipment except electrical (-48.9%), and manufacture of tobacco (-42.6 %).
The Value of Production Index (VaPI) went down 21.1% in January 2021, also faster than the previous month’s 15.4% drop.
Contributing to the faster decline of VaPI in January 2021 were the reductions in the indices of 18 out of the 22 industry divisions. These were led by manufacture of wood, bamboo, cane, rattan articles and related products (-53.5%); manufacture of coke and refined petroleum products (-53.1%); and manufacture of machinery and equipment except electrical (-51%).
Based on responding establishments, the average capacity utilization rate of the manufacturing sector in January 2021 was 46.1%, down from 49.1% in December 2020.
Seven of the 22 industry divisions had at least 50% average capacity utilization rate, namely, manufacture of basic pharmaceutical products and pharmaceutical preparations (67.5%); manufacture of wood, bamboo, cane, rattan articles, and related products (56.6%); printing and reproduction of recorded media (56.1%); manufacture of paper and paper products, (55%); manufacture of computer, electronic, and optical products (52%); manufacture of rubber and plastic products (51.6%); and manufacture of furniture (50%).
The proportion of establishments that operated at full capacity (90% to 100%) was 20.9% of the total number of responding establishments. Meanwhile, 40.5% operated at 70% to 89% capacity, while more than one-third (38.6%) operated below 70%.
