PH manufacturing slows in May

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PH manufacturing slows in May
  • The Philippine manufacturing sector saw slower growth in May 2024
  • More than half of the 22 industry divisions reported decreases
  • The value of production index registered a 2.2% increment in May 2024 but slower than the 5.7% increase in April 2024 and 8.5% in May 2023
  • The volume of production index grew 3.2% in May 2024, also easing from than the 6.3% growth in April 2024 and 6.1% in May 2023
  • The average capacity utilization rate for the manufacturing section was reported at 75.5% in May from 75.3% month-on-month

The Philippine manufacturing sector slowed in May 2024 as more than half of the 22 industry divisions reported decreases, according to the latest data from the Philippine Statistics Authority (PSA).

The value of production index (VaPI) for manufacturing registered a 2.2% increment in May 2024, slower than the 5.7% increase in April 2024 and 8.5% in May 2023.

READ: PH manufacturing sector grows in April

This brings the average growth rate of VaPI from January to May 2024 to -0.1%, according to PSA’s latest Monthly Integrated Survey of Selected Industries (MISSI).

The volume of production index (VoPI) likewise grew 3.2% in May 2024, slower than the 6.3% growth in April 2024 and 6.1% in May 2023.

From January to May 2024, the average growth rate of VoPI is 0.9%.

The slower growth in VaPi was mainly attributed to the deceleration in the annual growth rate of the manufacture of computer, electronic and optical products industry division to 1.6%.

Other primary contributors to the slower increase were the annual decreases noted in the manufacture of fabricated metal products, except machinery and equipment at 18%, and in the manufacture of chemical and chemical products at 12.6%.

Of the remaining 19 industry divisions, 12 exhibited annual declines in their VAPI during the period.

Seven industry divisions, meanwhile, posted annual increases, with the manufacture of coke and refined petroleum products posting the highest annual increment of 50.9%.

The downward trend in VoPI, on the other hand, was primarily driven by the same top three industry divisions. The manufacture of fabricated metal products, except machinery and equipment, saw a 13.4% decline; manufacture of chemical and chemical products dropped 11.7%; and manufacture of computer, electronic and optical products with a 0.3% decrement.

Of the remaining 19 industry divisions, 12 exhibited annual declines during the period. Seven industry divisions posted annual increases in May 2024. The manufacture of coke and refined petroleum products posted the highest annual growth of 53.6%.

Based on MISSI’s responding establishments, the average capacity utilization rate for the manufacturing section in May 2024 was reported at 75.5% from 75.3% in the previous month.

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 manufacture of machinery and equipment except electrical (83.4%), manufacture of other non-metallic mineral products (82.1%), and manufacture of rubber and plastic products (81.2%).