The Philippine manufacturing sector rebounded in volume but continued to decline in value in February 2020, according to the Philippine Statistics Authority (PSA).
Based on preliminary result of PSA’s Monthly Integrated Survey of Selected Industries, the Volume of Production Index (VoPI) made a turnaround after 14 months of decline as it grew by 3% in February 2020 from the -9.3% annual growth in February 2019.
READ: PH manufacturing weakens for 14th consecutive month in Jan
The growth in VoPI was due to 10 major industry groups exhibiting increases, with printing (38.4%), fabricated metal products (30.3%), machinery except electrical (28.0%), chemical products (23.8%), beverages (16.9%), and wood and wood products (11.3%) recording two-digit annual growth.
The Value of Production Index (VaPI) dropped 1.8% in February 2020, its 15th straight month of decline. This drop was slower than the recorded decrease in the previous month at annual rate of 5.2% and in February 2019 at 6.2%.
The VaPI was pulled down by declines in 11 out of the 20 major industry groups. Posting the biggest contractions were petroleum products (-35.9%), tobacco products (-26.1%), leather products (-26.1%), miscellaneous manufactures (-24.4%), basic metals (-14.9%), transport equipment (-12.1%), and paper and paper products (-10.6%).
Average capacity utilization rate for total manufacturing in February 2020 was at 84.6% with 12 of the 20 major industries having at least 80% capacity utilization rates during the month. About 27.9% of manufacturing establishments operated at full capacity (90% to 100%). More than half or 54.4% operated at 70% to 89% percent capacity while almost one-fifth or 17.7% operated below 70% capacity.
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