PH manufacturing sees continued growth in July

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PH manufacturing sees continued growth in July
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  • The Philippine manufacturing sector continued to grow in July 2023
  • The Volume of Production Index registered a year-on-year increment of 5.7% while the Value of Production Index likewise rose 5.7%
  • The manufacture of beverages, coke and refined petroleum products, and food products contributed the most in the increase in VoPI and VaPI
  • The average capacity utilization rate for the manufacturing sector in July 2023 was reported at 73.5%, slightly up from 73.3% of the previous month

The Philippine manufacturing sector continued to grow in July 2023, according to the Philippine Statistics Authority (PSA).

The Volume of Production Index (VoPI) for manufacturing registered a year-on-year increment of 5.7% in July 2023, faster than the 3.4% increase in June 2023 and 3.6% in July 2022, according to PSA’s latest Monthly Integrated Survey of Selected Industries (MISSI).

The Value of Production Index (VaPI) likewise rose 5.7% in July 2023, faster compared with the 4.2% growth in June 2023 but slower than the 12.1% increase recorded in July 2022.

The higher annual growth of VoPI in July 2023 was mainly brought about by annual increases in three industry divisions: manufacture of coke and refined petroleum products, 36.2%; manufacture of beverages, 12.6%; and manufacture of food products, 1.2%.

Of the remaining 19 industry divisions, six registered year-on-year increases in July 2023. In contrast, 13 industry divisions posted annual declines during the period. The highest annual drop was observed in manufacture of furniture at -27.7%.

Expansion in the annual growth of the VaPI in July 2023, meanwhile, was mainly attributed to the higher annual increase in the index of manufacture of beverages industry division with 22.6%. The division contributed 38.3% to the annual uptrend of VaPI.

Other main contributors were the manufacture of coke and refined petroleum products with 26.6% annual increase and manufacture of food products with an annual rate of 3.1%.

Of the remaining 19 industry divisions, seven exhibited annual upturns during the period while 12 industry divisions posted annual declines. The manufacture of furniture posted the fastest annual drop of -25.7% during the period.

Based on MISS’s responding establishments, the average capacity utilization rate for the manufacturing sector in July 2023 was at 73.5%, slightly up from 73.3% of the previous month.

All industry divisions reported capacity utilization rates of more than 50% during the month. The top three industry divisions were manufacture of computer, electronic, and optical products (81%), manufacture of rubber and plastic products (80.7%), and products manufacture of machinery and equipment except electrical (80.4%).

The proportion of establishments that operated at full capacity (90% to 100%) was 27.8% of the total number of responding establishments; 37.3% operated at 70 to 89% capacity; and 34.9% at below 70% capacity.