- The Philippine manufacturing sector grew for the ninth consecutive month in December 2021
- Month-on-month, the Volume of Production Index rose 17.9% while the Value of Production Index jumped 18.6% in December
- The growth of VOPI in December was, however, slower than the 25.8% uptick in November
- The average capacity utilization rate also slipped to 67.3% in December from 67.8% in November
- The manufacture of wood, bamboo, cane, rattan articles and related products contributed most to the improvement of VOPI in December
The Philippine manufacturing sector expanded for the ninth consecutive month in December 2021, according to the Philippine Statistics Authority (PSA).
The Volume of Production Index (VoPI) rose 17.9% annually in December 2021, slower than the 25.8% growth recorded in November 2021 but a reversal from the -14.8% decline in December 2020, according to PSA’s latest Monthly Integrated Survey of Selected Industries.
The Value of Production Index (VaPI) registered an annual increment of 18.6% in December 2021 compared to the 27.2% growth in November 2021 and -18% drop in December 2020.
VoPI and VaPI began recording growth in April 2021 after 13 consecutive months of decline, an effect of COVID-19-related restrictions in the country that started in March 2020, pulling down production and sales indices for the sector.
Eleven of the 22 industry divisions posted positive growth and contributed to the increase in VoPI. Of these, manufacture of wood, bamboo, cane, rattan articles and related products was the major contributing factor with a growth rate of 122.6%.
The remaining 11 industry divisions posted decreases, led by manufacture of basic pharmaceutical products and pharmaceutical preparations with a -30.2% annual rate.
Twelve of 22 industry divisions contributed to the growth in VaPI. The top contributor was manufacture of wood, bamboo, cane, rattan articles and related products and manufacture of coke and refined petroleum products with 93.6% and 75.1% annual growth rates, respectively.
The remaining 10 industry divisions registered decreases with manufacture of basic pharmaceutical products and pharmaceutical preparations registering the fastest annual decline of -29.5%.
Based on the survey’s responding establishments, the average capacity utilization rate for the manufacturing sector in December 2021 was 67.3% from 67.8% in the previous month.
Twenty out of 22 industry divisions had more than 50% average capacity utilization rate, led by manufacture of tobacco products (87%), manufacture of other non-metallic mineral products (81.3%), and manufacture of furniture (78.3%).
The proportion of establishments that operated at full capacity (90% to 100%) was 23.3% of the total number of responding establishments. Meanwhile, 39.7% operated at 70% to 89% capacity, while percent 37% operated below 70% capacity.
