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The Philippine manufacturing sector grew in June 2023, albeit at a slower pace
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The Volume of Production Index rose 3.4% while the Value of Production Index increased 3.9%
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The annual decline in the manufacture of food products mainly contributed to the slower growth in VoPI and VaPI
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The average capacity utilization rate for manufacturing section in June 2023 was reported at 73.2%, a slight drop from 73.4% in the previous month
The Philippine manufacturing sector grew in June 2023, albeit at a slower pace, according to the Philippine Statistics Authority (PSA).
The Volume of Production Index (VoPI) for manufacturing registered a year-on-year increment of 3.4% in June 2023, slower than the 7.7% annual growth in May 2023 but in contrast with the 0.04% decline in June 2022, according to PSA’s latest Monthly Integrated Survey of Selected Industries (MISSI).
The Value of Production Index (VaPI) likewise increased by 3.9% annually in June 2023, slower than the 9.9% and 7.8% improvement recorded in May 2023 and June 2022, respectively.
The slower annual growth of VaPI in June 2023 was mainly contributed by the annual drop in manufacture of food products industry division, which out of the 22 industry divisions had the highest weight in the computation of VaPI. The manufacture of food products declined by 0.4% and contributed 36.8% to the downtrend of VaPI.
Other main contributors to the slower growth of VaPI were the annual declines in the manufacture of fabricated metal products, except machinery and equipment at 33.4%, and manufacture of beverages with an annual drop of 2.7%.
Of the remaining 19 industry divisions, 11 exhibited annual reductions in their indices during the period while eight industry divisions registered annual increases during the month. The highest year-on-year growth during the period was exhibited by printing and reproduction of recorded media at 37.4%.
The slower annual growth of the VoPI was also brought by the annual declines in the manufacture of food products (3.2%), fabricated metals (36.4%), and beverages (7.7%).
Of the remaining 19 industry divisions, 10 exhibited annual deceleration in their indices during the period. In contrast, there were nine industry divisions that recorded annual increments in June 2023. The highest annual upturn was also led by printing and reproduction of recorded media at 34.6%.
Based on MISSI’s responding establishments, the average capacity utilization rate for manufacturing section in June 2023 was reported at 73.2%, a slight drop from 73.4% in the previous month.
All industry divisions reported capacity utilization rates of more than 50% in June 2023. The top three industry divisions in terms of reported capacity utilization rate were manufacture of machinery and equipment except electrical (81.5%), manufacture of transport equipment (80.8%), and manufacture of rubber and plastic products (80.2%).
Establishments that operated at full capacity (90% to 100%) was at 26.5% of the total number of responding establishments. Meanwhile, 36.7% operated at 70 to 89% capacity, and 36.8% operated below 70% capacity.
