Philippine manufacturing sector continued to contract in both volume and value for the ninth consecutive month in November 2020
Volume of Production Index in November dropped 10.8% while Value of Production Index fell 13.8%, both drops faster than the recorded declines in October 2020
The contraction was due to decline in more than 15 industry groups, led by petroleum products, tobacco, and printing
Average capacity utilization rate by manufacturers in November 2020 slowed slightly to 70.9% from 71.8% in the previous month
The Philippine manufacturing sector continued to contract in both volume and value for the ninth consecutive month in November 2020, the fall led by double-digit declines in petroleum products, tobacco, and printing.
The Volume of Production Index (VoPI) dropped 10.8% in November 2020, faster than the 9.3% decline in October 2020, according to the Philippine Statistics Authority’s (PSA) latest Monthly Integrated Survey of Selected Industries.
The downtrend in VoPI was influenced by the two-digit decrements in the indices of 16 industry groups led by petroleum products (-61.9%), tobacco products (-58.6%) and printing (-51.5%).
The Value of Production Index (VaPI) likewise posted a downturn of 13.8% in November 2020, faster than the decrease in the previous month of 12.3%.
Contributory to the faster annual decline of VaPI were the decreases in the indices of 17 industry groups. Among these industry groups, the top three were petroleum products (-66.0%), tobacco products (-56.9%) and printing (-50.8%).
Based on responding establishments, the average capacity utilization rate for the manufacturing sector in November 2020 was 70.9%, down from 71.8% in the previous month.
Six of the 20 industry groups had at least 80% average capacity utilization rate. These groups were led by machinery except electrical (91.7%), followed by electrical machinery (85.4%), and furniture and fixtures (84.4%).
The proportion of establishments that operated at full capacity (90% to 100%) was 20.1% of the total number of responding establishments. More than 45% operated at 70% to 89% capacity, while 34.3% operated below 70% capacity.