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Philippine manufacturers continued to record growth in both volume and value for the 19th straight month in October 2022
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Last month’s Volume of Production Index (VoPI) and Value of Production Index (VaPI) grew 5.1% year-on-year and 12.7% y-o-y, respectively
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The sector’s average capacity utilization rate in October rose to 72.4% from 71.5% in September
The Philippine manufacturing sector’s growth streak continued for the 19th straight month in October 2022, according to the Philippine Statistics Authority (PSA).
The Volume of Production Index (VoPI) recorded a year-on-year increase of 5.1% in October, faster than the 4.1% in September but slower than the 27% growth in October 2021, PSA’s latest Monthly Integrated Survey of Selected Industries showed.
The Value of Production Index (VaPI) likewise registered a two-digit, year-on-year expansion of 12.7% in October, faster than the 12% growth in September but slower than the 27.8% in October 2021.
VoPI and VaPI began growing in April 2021 after 13 consecutive months of decline as COVID-19-related restrictions in the country starting in March 2020 dragged the sector’s production and sales indices.
The VoPI growth stemmed from annual increases in 14 out of 22 industry divisions led by manufacture of machinery and equipment, which grew 81.8% y-o-y. In contrast, eight industry divisions posted annual declines with manufacture of electrical equipment logging the fastest drop of 56.9% y-o-y.
Contributing to VaPI’s growth was the annual growth in 17 industry divisions. Manufacture of machinery and equipment also led with the highest growth rate of 76.4% y-o-y. The remaining five industry divisions slipped in production with manufacture of electrical equipment sliding the most at 55.8% y-o-y.
The VaPI for the manufacture of food products grew 3.8% while VoPI dropped 5.3% y-o-y.
Of the eight industry groups under the manufacture of food products, six recorded VaPI growth in October 2022. Three industry groups posted double-digit year-on-year increases led by manufacture of grain mill products, starches and starch products 50.3% y-o-y.
For VoPI, the decrease was attributed to the two-digit declines in the manufacture of prepared animal feeds, down 21.3% y-o-y, and manufacture of dairy products, down 20.6% y-o-y.
Based on MISSI’s responding establishments, the average capacity utilization rate for manufacturing sector in October 2022 was at 72.4%, up from 71.5% in September.
There were 20 out of 22 industry divisions with a more than 60% average capacity utilization rate. These are led by manufacture of computer, electronic, and optical products at 80.3%, manufacture of machinery and equipment except electrical at 80.1%, and manufacture of wearing apparel at 79.3%.
Almost one-fifth, or 19.9%, of the responding establishments operated at full capacity of 90% to 100% in October. Meanwhile, 40.4% operated at 70% to 89% capacity, while 39.7% operated below 70% capacity.
