The Philippines’ manufacturing output in August 2017 recovered from its decline in July and is seen to improve in the last quarter of the year, according to the National Economic and Development Authority (NEDA).
In the Monthly Integrated Survey of Selected Industries (MISSI) of the Philippine Statistics Authority, a NEDA-attached agency, the manufacturing sector’s Volume of Production Index (VoPI) increased 2.8% from the 3.5% decline last July.
The Value of Production Index (VaPI) likewise increased 2.4% from a drop of 2% in the previous month.
The three-month moving average for both indexes remained in the positive territory at 0.2% and 1.7 %, respectively.
NEDA officer-in-charge and undersecretary Rolando G. Tungpalan said manufacturing growth will continue to improve in the fourth quarter, and highlighted construction products as the key drivers for the said sector.
“Sustained infrastructure development, translating to increase in public construction expenditure, is anticipated not only to increase the growth of the manufacturing sector but also to support the continuous growth of the economy,” Tungpalan said.
Construction-related manufactures led the recovery in manufacturing output as the production of basic metals, fabricated metal products, and non-metallic mineral products continues to increase at 28.5%, 89.5%, and 18.7%, respectively.
“The local production capacity and efficiency of construction-related manufacturers must be expanded to support our initiative of massive spending in infrastructure programs and projects,” Tungpalan said.
Similarly, export-oriented products contributed to the rebound of the manufacturing sector as the production in furniture and fixtures, as well as leather products, remained positive at 35.6% and 21.9%.
The NEDA official said, however, that while the outlook for manufacturing growth remains optimistic, risks and uncertainties persist.
“Short-term upward inflationary pressures such as increase in global oil prices, as well as price increases in fish, corn, vegetables, flour and other cereal products, may affect cost of production. Typhoon occurrences may also interrupt business activities, resulting in lower manufacturing output,” Tungpalan said.
MISSI is a report that monitors the production, net sales, inventories, and capacity utilization of selected manufacturing establishments and provides flash indicators on the performance of the manufacturing sector.
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