PH manufacturing sector grows in April

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PH manufacturing sector grows in April
  •  The Philippine manufacturing sector recovered in April 2024 as more than half of the 22 industry divisions reported increased activities
  • The volume of production index in April grew 6.7% while the value of production rose 5.9%
  • The average capacity utilization rate for the manufacturing section in April 2024 was reported at 75.2% from 75.3% in March 2024

The Philippine manufacturing sector recovered in April 2024 as more than half of the 22 industry divisions reported increased activities, according to data from the Philippine Statistics Authority (PSA).

The volume of production index (VoPI) in April grew 6.7% year-on-year after exhibiting an annual decrease of 5.8% in March 2024. The April 2024 growth rate was, however, slower than the 8% annual increase in April 2023.

From January to April 2024, the average growth rate of VoPI was registered at 0.5%, according to PSA’s latest Monthly Integrated Survey of Selected Industries (MISSI).

The value of production index (VaPI) likewise increased 5.9% year-on-year in April 2024, a reversal from the 6.8% annual decline in March 2024 but slower than the 10.7% annual growth posted in April 2023.

The average growth rate of VaPI from January to April 2024 was at -0.6%.

The upward trend in VoPI was primarily driven by the annual increase in the manufacture of food products at 6.8%. Other primary contributors to the uptrend were the annual increases noted in the manufacture of transport equipment at 5.1%, and in the manufacture of fabricated metal products, except machinery and equipment, at 32.3%.

Twelve other industry divisions exhibited growth in their indices during the period, while seven others posted annual decreases. The highest year-on-year decrement in April was noted in the manufacture of wood, bamboo, cane, rattan articles and related products at 11.2%.

For VaPI, the annual increase in the manufacture of food products at 7.4% likewise contributed to the overall improvement in April 2024. Other primary contributors were the 6.6 increase in the manufacture of transport equipment, and the 40.9% growth in the manufacture of electrical equipment.

Furthermore, 13 other industry divisions exhibited annual increases in their indices during the period, while the other six industry divisions posted annual decreases. The manufacture of wood, bamboo, cane, rattan articles and related products recorded the highest annual decrement at 13.9%.

The value of net sales index for manufacturing rose 6.4% year-on-year in April 2024, bringing the average growth rate from January to April 2024 to -1.6%.

The volume of next sales index likewise increased 7.2% in April 2024, resulting to an average growth rate from January to April 2024 to -0.5%.

Based on MISSI’s responding establishments, the average capacity utilization rate for the manufacturing section in April 2024 was reported at 75.2% from 75.3% in March 2024. In April 2023, the average capacity utilization rate was recorded at 72.5% with all industry divisions reported capacity utilization rates of more than 60%.

The top three industry divisions in terms of reported capacity utilization rate were manufacture of other non-metallic mineral products (82.1%), manufacture of furniture (81.9%), and manufacture of textiles (80.1%).

READ: PH manufacturing slips in March