The Philippine manufacturing sector recorded its third consecutive month of triple-digit increases in June 2021
Volume of Production Index went up 453.1% while Value of Production Index grew 439.6%
Of the 22 industry divisions, 19 recorded increases in both volume and value, led by manufacture of coke and refined petroleum products
Average capacity utilization rate of establishments jumped by 67.7% in June 2021 from 66.6% in May 2021
The country’s manufacturing sector continued to improve in both volume and value, recording its third consecutive month of triple-digit increases in June 2021, according to the Philippine Statistics Authority (PSA).
The Volume of Production Index (VoPI) grew 453.1% in June 2021, faster than the 263.2% increase registered in May 2021 and a reversal from the 80.6% decline in June 2020, according to PSA’s latest Monthly Integrated Survey of Selected Industries. It must be noted though that the manufacturing sector in June 2020 was adversely affected by COVID-19-related restrictions in the country, which resulted in low production and sales indices for the sector.
The growth in June 2021 is the third consecutive month of improvement in VoPI after 13 months of straight decline since March 2020.
Nineteen out of 22 industry divisions showed improvements. The fastest growth rate was registered in the manufacture of coke and refined petroleum products at 2,932.2%.
In contrast, the remaining three industry divisions recorded decreases in June, with manufacture of tobacco products registering the fastest annual decline of 65.2%.
The Value of Production Index (VaPI) likewise rose 439.6% in June 2021 from an annual increase of 248.1% in May 2021 and in contrast to the 81.7% decline in June 2020.
This is also the third positive growth in a row for VaPI since April 2019 and the highest annual growth in the 2018-based data series.
Nineteen of the 22 industry divisions registered positive annual growth rates. Among these, the top contributor was manufacture of coke and refined petroleum products with 3,230% annual growth rate.
The remaining three industry divisions were on a downward trend, led by manufacture of tobacco products with a 65.1% annual growth rate.
Based on responding establishments, the average capacity utilization rate for the manufacturing sector in June 2021 grew by 67.7% from 66.6% in May 2021.
Of the 22 industry divisions, 18 had more than 50% average capacity utilization rate, led by manufacture of furniture (83%), manufacture of other non-metallic mineral products (78.7%), and manufacture of tobacco products (76.2%).
Of the responding establishments, 26.5% operated at full capacity, while 33.4% operated at 70% to 89%, and 40.1% operated below 70% capacity.