PH manufacturing grows for 11th straight month in Feb

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Manufacturing grows
The Philippine volume of production index and value of production index started recording growth in April 2021 after 13 consecutive months of decline, an effect of COVID-19-related restrictions in the country that began March 2020 and dragged production and sales indices for the sector. Image by Ken Toshima from Pixabay
  • The Philippine manufacturing sector grew for the 11th consecutive month in February 2022, recording double-digit growth in both volume and value
  • The Volume of Production Index rose at 84.3% while the Value of Production Index increased at 92.4%
  • 19 of 22 industry divisions recorded positive growths led by manufacture of coke and refined petroleum products
  • The average capacity utilization rate for the sector rose to 69% from 68.3% in the previous month

The Philippine manufacturing sector grew for the 11th consecutive month in February 2022, recording double-digit growth in both volume and value, according to the Philippine Statistics Authority (PSA).

The Volume of Production Index (VoPI) rose at an annual rate of 84.3% in February 2022, higher than the 17.1% growth in January 2022 and a reversal from the -43.9% drop in February 2021, according to PSA’s latest Monthly Integrated Survey of Selected Industries.

The Value of Production Index (VaPI) likewise increased with an annual growth rate of 92.4% in February 2022, from a slower annual rate of 21.8% in January 2022 and in contrast to the -47% decline in February 2021.

VoPI and VaPI started recording growth in April 2021 after 13 consecutive months of decline, an effect of COVID-19-related restrictions in the country that began March 2020 and dragged production and sales indices for the sector.

The surge in VoPI was brought about by positive growth of 19 of the 22 industry divisions. Of these, the manufacture of coke and refined petroleum products was the major contributing factor with a three-digit annual growth rate of 748.9%. The three industry divisions that recorded decreases were led by manufacture of electrical equipment with -28.8% annual rate.

For VaPI, 19 industry divisions reported positive growths led by manufacture of coke and refined petroleum products, which posted an annual growth of 874.9%. Three industry divisions showed downturns in February, with manufacture of electrical equipment seeing the fastest decline of -26.2%.

Based on the survey’s responding establishments, the average capacity utilization rate for the manufacturing sector in February was 69% from 68.3% in the previous month.

Almost all industry divisions reported capacity utilization rates of more than 50% except for manufacture of wood, bamboo, cane, rattan articles, and related products (48.7%). Among these, the top three industry divisions were manufacture of furniture (84.1%), manufacture of other non-metallic mineral products (80.5%), and manufacture of electrical equipment (76.8%).

A fifth or 20% of the responding establishments operated at full capacity (90% to 100%), 36.8% at 70% to 89% capacity, and 43.2% below 70% capacity.

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