Philippine manufacturing slows in April after robust growth

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  • Philippine manufacturing growth slowed in both volume and value in April 2022
  • The Volume of Production Index rose 3.4% while the Value of Production Index grew 9.7% in April 2022, compared with triple-digit growths in March 2022 and April 2021
  • 14 industry divisions led by textile manufacture grew in terms of VoPI while 16 divisions also led by textile manufacture improved in terms of VaPI
  • The sector’s average capacity utilization rate was 69.2% in April, versus 70.9% in March

Philippine manufacturing slowed in April both in terms of volume and value, according to the Philippine Statistics Authority (PSA).

After recording double-digit and triple-digit growths since April 2021, the Volume of Production Index (VoPI) and Value of Production (VaPI) recorded slower advances but continued their growth streak for the 13th consecutive month in April.

VoPI grew 3.4% in April, flat compared with the 352.3% upsurge in March and the 157.8% growth in April 2021, according to PSA’s latest Monthly Integrated Survey of Selected Industries.

READ: PH manufacturing records three-fold jump in March

VaPI likewise registered a paltry 9.7% growth in April versus a 375.1% increase in March and 150.1% expansion in April 2021.

Production Index and Net Sales Index (Monthly Integrated Survey of Selected Industries) April 2022

VoPI and VaPI began recording growth in April 2021 after 13 consecutive months of decline triggered by COVID-19-related restrictions in the country that since March 2020 that pulled down production and sales indices for the sector.

The upturn in VoPI was brought about by increased production in 14 of the 22 industry divisions. Of these, manufacture of textiles was the major contributor with a 45.6% annual growth rate.

Meanwhile, eight industry divisions showed downturns in VoPI with manufacture of electrical equipment registering the biggest annual contraction of 28.1%.

For VaPI, 16 of the 22 industry divisions reported positive growth, led by manufacture of textiles with a 51.1% increase. The remaining six industry divisions recorded annual declines in production, with the manufacture of electrical equipment having the steepest annual drop of 25.4%.

Based on the survey’s responding establishments, the average capacity utilization rate of the manufacturing sector in April was 69.2%, versus 70.9% in the previous month.

There were 18 out of 22 industry divisions with a more than 60% average capacity utilization rate, led by manufacture of furniture at 79.2%, manufacture of other non-metallic mineral products, 79%, and manufacture of worn apparel, 77.8%.

Establishments that operated at full capacity of 90% to 100% comprised 21.7% of the total number of responding establishments, while 39.7% operated at 70% to 89% capacity, and 38.6% operated below 70% capacity.

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