PH manufacturing records faster growth in Feb

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PH manufacturing records faster growth in Feb
Image by Marijn Hubert from Pixabay
  • The Philippine manufacturing sector recorded faster growth in February 2024 with more than half of the 22 industry divisions posting increases
  • The value of production index for manufacturing continued to increase at an annual rate of 7.5% while the volume of production index rose 8.9% year-on-year
  • The expansion in VaPI and VoPI was mainly attributed by the double-digit annual increment in the manufacture of computer, electronic and optical products

The Philippine manufacturing sector recorded faster growth in February 2024 with more than half of the 22 industry divisions posting increases, according to the Philippine Statistics Authority (PSA).

The value of production index (VaPI) for manufacturing continued to increase at an annual rate of 7.5% in February 2024, faster than the 5% year-on-year growth rate in January 2024 and 6.7% in February 2023.

This brings the average growth rate of VaPI from January to February 2024 to 6.2%, according to PSA’s latest Monthly Integrated Survey of Selected Industries (MISSI).

The volume of production index (VoPI) likewise rose 8.9% year-on-year in Ferbuary 2024, faster than the annual growth rate of 6.2% in January 2024 and 2.6% in February 2023. For January to February 2024, the average growth rate of VoPI is 7.5%.

The expansion in VaPI was mainly attributed by the double-digit annual increment in the manufacture of computer, electronic and optical products at 14.7%.

Out of the 22 industry divisions for the manufacturing section, manufacture of computer, electronic and optical products was the second industry division with the highest weight in the computation of VaPI.

Other main contributors were the faster annual increases in the manufacture of chemical and chemical products at 21%, and food products at 9.5%.

Of the remaining 19 industry divisions, 12 exhibited annual upturns while seven industry divisions posted annual declines in February 2024. The other manufacturing and repair and installation of machinery and equipment posted the fastest annual drop of 25.4% during the period.

For VoPI, the expansion was likewise mainly brought about by the double-digit annual increase in the manufacture of computer, electronic and optical products at 13.4%.

Similarly, other main contributors were the higher annual increment in the manufacture of food products at 9.2%, and the double-digit annual increase observed in the manufacture of chemical and chemical products at 25.9%.

Ten other industry divisions registered year-on-year increases in VoPI for February 2024. In contrast, nine industry divisions posted annual declines with other manufacturing and repair and installation of machinery and equipment having the highest drop at 23.7%.

For both VoPI and VaPI, the top three industry divisions contributing to their overall year-on-year growth were the manufacture of computer, electronic and optical products; food products; and coke and refined petroleum products.

The value of net sales index in February 2024 recorded a slower annual decrease of 1.7% from the annual drop of 6.3% in January 2024. The volume of net sales index likewise registered a slower year-on-year decrement of 0.5% from the 5.3% decline in January 2024.

Based on MISSI’s responding establishments, the average capacity utilization rate for the manufacturing section in February 2024 was reported at 75%, slightly lower than the 75.2% in January.

All industry divisions reported capacity utilization rates of more than 60%.

The top three industry divisions in terms of reported capacity utilization rate were machinery and equipment except electrical (84.6%), rubber and plastic products (80%), and transport equipment (80%).

READ: PH manufacturing sector sees slower growth in Jan