PH manufacturing sector sees strong growth in August

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PH manufacturing sector sees strong growth in August
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  • The Philippine manufacturing sector continued to grow in both volume and value in August
  • The Value of Production Index (VaPI) grew 9.1% while the Volume of Production Index (VoPI) likewise registered an 8.5% expansion
  • The manufacture of computer, electronic and optical products, food products, and coke and refined petroleum products mainly contributed to the increases in VaPI and VoPI
  • The average capacity utilization rate for manufacturing section in August 2023 was reported at 73.9% from 73.6% in the previous month

The Philippine manufacturing sector continued to grow in both volume and value in August, according to the Philippine Statistics Authority (PSA).

The Value of Production Index (VaPI) for manufacturing continued to increase at an annual rate of 9.1% in August, according to PSA’s latest Monthly Integrated Survey of Selected Industries (MISSI). This was faster compared with the 4.9% growth in July but slower than the double-digit increment of 12.3% in August 2022.

The Volume of Production Index (VoPI) likewise registered an 8.5% expansion in August, faster than the 4.9% growth in July and the 4.6% increase in August 2022.

The expansion in VaPI was mainly attributed to the slower annual decrease in the index of the manufacture of computer, electronic, and optical products industry division, which contributed 37.4% to the annual uptrend of VaPI in August.

Other main contributors were the manufacture of food products and the manufacture of coke and refined petroleum products.

Of the remaining 19 industry divisions, six exhibited annual upturns during the period. Meanwhile, 13 industry divisions posted annual declines in August. The manufacture of furniture posted the fastest annual drop of 30% during the period.

Also in August, the annual growth in the same top three industry divisions primarily drove the increase in VoPI, which had also contributed to the higher annual rate of VaPI during the period. These were the manufacture of computer, electronic, and optical products; the manufacture of food products; and the manufacture of coke and refined petroleum products.

Of the remaining 19 industry divisions, seven registered year-on-year increases in terms of VoPI in August. In contrast, 12 industry divisions posted annual declines during the period. The highest annual drop was observed in the manufacture of furniture at 31.9%.

Based on MISSI’s responding establishments, the average capacity utilization rate for the manufacturing section in August was reported at 73.9% up from 73.6% in the previous month.

All industry divisions reported capacity utilization rates of more than 50% during the month. The top three industry divisions in terms of reported capacity utilization rate were manufacture of machinery and equipment except electrical (80.3%), manufacture of rubber and plastic products (79.5%), and manufacture of transport equipment (79.3%).

The proportion of establishments that operated at full capacity (90% to 100%) was 25.4% of the total number of responding establishments. Meanwhile, 39.9% operated at 70% to 89% capacity, and 34.7% operated at 70% and below capacity.