Philippine manufacturing sees steady but slower 2022 growth

Philippine manufacturing sees steady but slower 2022 growth
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  • Philippine manufacturing volume and value in 2022 grew in double digits, albeit at a slower rate than in the previous year
  • The manufacturing sector’s Volume of Production grew 15.2% while its Value of Production expanded 22.5%
  • VoPI and VaPI last December rose for the 21st month straight month, slower year on year
  • The manufacturing sector’s average capacity utilization rate last December was reported at 71.6%, down from 72.6% in the previous month

Philippine manufacturing saw steady but slower growth in 2022 from 2021 2021, according to the Philippine Statistics Authority (PSA).

The Volume of Production (VoPI) for manufacturing grew 15.2% in 2022, a slowdown from the 52.6% annual average growth rate recorded in 2021, according to PSA’s latest Monthly Integrated Survey of Selected Industries (MISSI).

The Value of Production (VaPI) for manufacturing expanded by 22.5% in 2022, slower than the annual average increase of 49.2% in 2021.

PSA said the slower increase in VoPI last year was primarily due to the annual average deceleration in the index of manufacture of computer, electronic and optical products to 15.1% from 36.2% in 2021.

Secondly, the manufacture of basic metals fell 22% from 15% growth in the previous year, and, thirdly, the manufacture of food products with a 5.6% decline from 15.9% in 2021.

For VaPI, the slowdown was mainly contributed by the annual decrements in the indices of manufacture of basic metals (-16.3%) and manufacture of electrical equipment (-48.4%) industry divisions.

The PH manufacturing 2022 growth follows the 21st straight month of increase in December 2022. Both VoPI and VaPI in December 2022, however, also recorded slower expansions.

VaPI in December 2022 was at 10.1%, slower than the November 2022 annual growth of 12.5% and 19.6% acceleration in December 2021.

VoPI recorded a year-on-year increase of 4.8% in December 2022, slower than the 5.9% annual increment in November 2022 and 19.2% expansion in December 2021.

Based on MISSI’s responding establishments, the average capacity utilization rate for manufacturing sector in December 2022 was reported at 71.6%, down from 72.6% in the previous month.

There were 19 out of 22 industry divisions with more than 60% average capacity utilization rate, led by manufacture of wearing apparel at 79.7%, manufacture of machinery and equipment except electrical at 79%, and manufacture of other non-metallic mineral products at 76.3%.

The proportion of establishments that operated in full capacity of 90% to 100% was 24.3% of the total number of responding establishments. Meanwhile, 40.7% operated at 70% to 89% capacity, while 35% operated below 70% capacity.

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