PH manufacturing sector saw continued growth in Dec

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  • The value of production index (VaPI) grew at annual rate of 2.6% while the volume of production index (VoPI) likewise saw a 2% year-on-year increment in December
  • The Philippine Statistics Authority mainly attributes the expansion in VaPI and VoPI to the slower annual decrease in the manufacture of food products, which contributed the highest to the annual uptrend for the period
  • The average capacity utilization rate for the manufacturing sector in December 2023 was at 74.3%, slightly lower than the 74.8% in November

The Philippine manufacturing sector saw continued growth in December 2023 even as majority of industry divisions recorded decreases during the period, according to the Philippine Statistics Authority (PSA).

The value of production index (VaPI) for manufacturing grew at an annual rate of 2.6% in December 2023, faster than the 2% growth in November 2023 but slower than the double-digit increase of 10.1% in December 2022, according to PSA’s latest Monthly Integrated Survey of Selected Industries (MISSI).

The volume of production index (VoPI) likewise saw a 2% year-on-year increment last December, an improvement from the 1.8% recorded in November 2023 but slower compared with the 4.5% growth in December 2022.

The PSA mainly attributes the expansion in VaPI last December to the slower annual decrease in the manufacture of food products, which contributed 25.9% to the annual uptrend of VaPI for the period.

Other main contributors were the slower annual decreases in the manufacture of fabricated metal products, and manufacture of computer, electronic and optical products.

Of the remaining 19 industry divisions, nine exhibited annual upturns while 10 industry divisions posted annual reductions for the period. The manufacture of wood, bamboo, cane, rattan articles and related products registered the fastest annual drop of 56.1%.

The slower annual decline of food products also mainly brought the improvement in VoPI in December, contributing 34.5% to the uptrend.

Other main contributors were the faster annual increase observed in the manufacture of basic pharmaceutical products and pharmaceutical preparations, and the slower annual decline in the manufacture of fabricated metal products.

Of the remaining 19 industry divisions, eight registered year-on-year increases. In contrast, 11 industry divisions posted annual declines during the period with the highest annual drop observed in the manufacture of wood, bamboo, cane, rattan articles and related products at 55.3%.

For both VaPI and VoPI, the top three industry divisions that contributed to the overall year-on-year growth in December 2023 were the manufacture of coke and refined petroleum products, transport equipment, and basic metals.

The value of net sales index, meanwhile, recorded a slower annual decrease of 1.3%, in December, in contrast to the 7.1% annual drop in November 2023. The volume of net sales index, on the other hand,  registered a slower year-on-year decrement in December 2023 at 1.9% relative to its annual decrease of 7.2% in November 2023.

Based on MISSI’s responding establishments, the average capacity utilization rate for the manufacturing section in December 2023 was reported at 74.3%, slightly lower than the 74.8% in November.

All industry divisions reported capacity utilization rates of more than 60% during the month. The top three industry divisions in terms of reported capacity utilization rate were rubber and plastic products (80%), machinery and equipment (79.8%), and beverages (79.6%).

READ: PH manufacturing maintains growth in November