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Philippine manufacturing expanded in both volume and value for the 14th consecutive month in May 2022
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Volume of Production grew 1.9% while Value of Production improved 8.9% month on month
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The manufacturing sector achieved an average capacity utilization rate of 70.7% in May, up from 69.4% in the previous month
The Philippine manufacturing sector grew in both volume and value for the 14th consecutive month in May 2022, according to the Philippine Statistics Authority.
The Volume of Production Index (VoPI) gained 1.9% in May, slightly faster than the 1.2% growth in April but way behind the 267.2% expansion in May 2021, according to the latest Monthly Integrated Survey of Selected Industries (MISSI).
The Value of Production Index (VaPI) likewise logged a faster growth of 8.9% in May 2022 compared with 7.6% in April 2022, but much slower than the 256.1% upsurge in May 2021.
The May index is, however, the second consecutive month of slower or just one-digit growth year on year after both VoPI and VaPI recorded double-digit and triple-digit increases monthly since April 2021.
READ: Philippine manufacturing slows in April after robust growth
Last year’s explosive growths came from a low base following factory closures due to community lockdowns at the height of the COVID-19 pandemic in 2020.
VoPI and VaPI started recording growth in April 2021 after 13 consecutive months of decline resulting from COVID-19-related restrictions in the country that started in March 2020 and pulled down production and sales indices for the sector.
The growth in VoPI in May was due to the positive growth of 14 industry divisions, of which the fastest expansion, at 50.7%, was reported in the manufacture of machinery and equipment except electrical.
On the contrary, eight industry divisions recorded declines, with manufacture of electrical equipment registering the fastest annual contraction of 19.7%.
The annual growth in VaPI, meanwhile, was attributed to the positive growth rates of 15 industry divisions. Among these, manufacture of machinery and equipment except electrical posted the highest annual growth of 60.8% in May 2022. On the other hand, the remaining seven industry divisions recorded decrements in their production with manufacture of electrical equipment registering the fastest annual decline of -16.4%.
Based on the establishments that responded to the MISSI, the average capacity utilization rate in the manufacturing sector in May 2022 edged up to 70.7%, from 69.4% in the previous month.
There were 20 out of 22 industry divisions with more than 60% average capacity utilization rates. These were led by manufacture of furniture at 81.4%, manufacture of wearing apparel at 79.2%, and manufacture of other non-metallic mineral products at 78.6%.
Almost one-fourth or 24.3% of the responding establishments operated at full capacity of 90% to 100%. About 38.9% operated at 70% to 89% capacity, while 36.8% operated below 70% capacity.
