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Philippine manufacturing recorded its sixth month of continued triple-digit growth in September 2021, albeit at a slower pace than in previous months
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Volume of Production Index increased 124% while Value of Production Index rose 122.7% in September 2021
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13 industry divisions recorded growth in September 2021, led by the manufacture of coke and refined petroleum products
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The average capacity utilization rate in manufacturing for September 2021 improved to 66.5% from 66.2% in August 2021
The Philippine manufacturing sector recorded its sixth month of continued triple-digit growth in September 2021 although at a slower pace than in previous months, based on latest data from the Philippine Statistics Authority (PSA).
The Volume of Production Index (VoPI) in September 2021 rose 124%, slower than the 533.6% increase registered in the previous month but reversing the 56.7% decline in the same month last year, according to PSA’s latest Monthly Integrated Survey of Selected Industries.
The latest result is notably due to low base effects, with the manufacturing sector in September 2020 adversely affected by COVID-19-related restrictions in the country that started in March 2020 and which pulled down production and sales indices for the sector.
The increase in VoPI was brought about by positive growth rates of 13 industry divisions. Of these industries, manufacture of coke and refined petroleum products remained the major contributing factor with 739.7% growth. In comparison, the remaining nine industry divisions recorded decreases led by manufacture of tobacco products with a -52.8% annual rate.
The Value of Production Index (VaPI) likewise grew 122.7% in September 2021. The increment was, however, slower than the 527.3% increase registered in the previous month but a reversal from the -59% drop in September 2020.
The growth in VaPI was contributed by increases in 13 of the 22 industry divisions that registered positive annual growth rates. Among these, the top contributor was manufacture of coke and refined petroleum products with 890.1% annual growth rate. On the other hand, the remaining nine industry divisions recorded decreases with manufacture of tobacco products registering the fastest annual decline of -52.6%.
Based on responding establishments to the survey, the average capacity utilization rate for the manufacturing sector in September 2021 improved to 66.5% from 66.2% in August 2021.
Twenty of 22 industry divisions had more than 50% average capacity utilization rate, led by manufacture of furniture (85%), manufacture of other non-metallic mineral products (81%), and manufacture of tobacco products (79%).
About 23.1% of the total responding establishments operated at full capacity (90% to 100%). Meanwhile, 38.5% operated at 70% to 89% capacity, while 38.4% operated below 70% capacity.
