PH manufacturing growth slows in March

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PH manufacturing growth slows in March
Image by 加藤 俊 from Pixabay
  • The Philippine manufacturing sector continued to grow but at a slower pace in March 2023
  • The Volume of Production Index rose annually by 2.2% while Value of Production increased 4.9%
  • The average capacity utilization rate was 73% from 72.7% in February 2023

The Philippine manufacturing sector continued to grow but at a slower pace in March 2023, according to the Philippine Statistics Authority (PSA).

The Volume of Production Index (VoPI) registered a year-on-year increment of 2.2%, slower than the February 2023 annual growth of 5.2% and March 2022 annual acceleration of 346.2%, according to PSA’s latest Monthly Integrated Survey of Selected Industries.

The Value of Production Index (VaPI) improved 4.9% in March, likewise slower than its annual growth of 9% in the previous month and the 370.3% annual acceleration in March 2022.

The slower growth of VoPI was mainly brought about by lower annual rates in the manufacture of beverages at 4.9%;  manufacture of chemical and chemical products, -25.5%; and manufacture of basic metals, 18.6%.

Eleven industry divisions posted negative annual growth rates in March 2023. The highest annual decline was led by manufacture of wearing apparel with an annual downturn of -40.2%.

Eight industry divisions, on the other hand, posted year-on-year increases during the period, headlined by manufacture of transport equipment with a 25.3% growth.

The slower annual growth of VaPI, meanwhile, was mainly due to the slower annual increase in the index of manufacture of beverages industry division with 11.1% and manufacture of beverages with 24.1%.

Out of 22 industry divisions for the manufacturing section, the manufacture of beverages was the fourth industry division with the highest weight in the computation of VaPI.

Other main contributors to the slower year-on-year growth of VaPI in March 2023 were manufacture of chemical and chemical products, registering a faster annual decline of -25.5%, and manufacture of basic metals, which had a slower annual increment of 14.6%.

Of the total, 11 industry divisions exhibited annual decrements during the period. The highest negative annual growth rate was led by manufacture of wearing apparel posting an annual drop of -38%.

In contrast, there were eight industry divisions that recorded annual increments in March 2023. The highest annual upturn was led by manufacture of transport equipment with 22.1% year-on-year increase.

Based on MISSI’s responding establishments, the average capacity utilization rate for manufacturing section in March 2023 was reported at 73% from 72.7% in February 2023.

All industry divisions reported capacity utilization rates of more than 50% during the month.

The proportion of establishments that operated at full capacity (90% to 100%) was 21.7% of the total number of responding establishments. About 38% operated at 70 to 89% capacity while 40.3% operated below 70% capacity.

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