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Philippine manufacturers reported growth in both volume and value for the 20th consecutive month in November 2022
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The sector’s performance drove up its Volume of Production Index by 5.9% and its Value of Production Index by 12.7%
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Machinery and equipment production continued to lead the sector, posting the highest annual growth in both VoPI and VaPI
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The manufacturing sector’s average capacity utilization rate edged up to 72.5% in November 2022 from 72.4% in October
The Philippine manufacturing sector sustained growth in November 2022, its 20th consecutive month of expansion, data from the Philippine Statistics Authority (PSA) show.
The Volume of Production Index (VoPI) rose 5.9% year-on-year in November, faster than the 5.3% hike in October but slower than the 28.6% growth posted in November 2021, according to PSA’s latest Monthly Integrated Survey of Selected Industries (MISSI).
Out of the 22 industry divisions, 15 reported year-on-year growth. They were led by manufacture of machinery and equipment with a 68.5% y-o-y growth. In contrast, seven industry divisions saw production fall, with manufacture of electrical equipment suffering the fastest drop at 54.5% y-o-y.
The Value of Production Index (VaPI) register a two-digit year-on-year expansion, with the 12.7% growth in November 2022 lagging October’s 13% growth and far below November 2021’s 30%.
Of the 22 industry divisions, 17 contributed to the VaPI growth. Among these, manufacture of machinery and equipment had the highest growth rate of 67.9% y-o-y. Five industry divisions, on the other hand, reported production setbacks, with manufacture of electrical equipment logging the fastest decline of 53.6% y-o-y.
Manufacture of food products sustained its value of production growth but saw its volume decline in November 2022. The division’s VaPI rose 7.6% y-o-y while its VoPI eased 0.4% y-o-y.
All industry groups in the manufacture of food products division grew in terms of value, except for manufacture of prepared animal feeds, which saw its value decline 16.5% y-o-y.
Four of the seven industry groups that reported growth had double-digit increases. These were led by manufacture of grain mill products, starches and starch products, which grew 59.4% y-o-y.
The manufacture of food products’ VoPI contraction, meanwhile, was attributed to a 27.7% y-o-y drop in the manufacture of prepared animal feeds, an 11.9% y-o-y fall in processing and preserving of fish, crustaceans and mollusks, and a 4% y-o-y decline in the manufacture of other food products.
Based on MISSI’s responding establishments, the average capacity utilization rate in the manufacturing sector in November 2022 was 72.5%, up slightly from 72.4% in the previous month.
Almost all the industry divisions reported capacity utilization rates of more than 60%, except for the manufacture of paper and paper products, which had 56.8%.
The top three industry divisions in terms of reported capacity utilization rate were manufacture of computer, electronic, and optical products with 80.6%, manufacture of machinery and equipment except electrical with 80%, and manufacture of furniture with 79%.
Almost one-fifth or 18.7% of responding establishments operated at full capacity of 90% to 100% in November 2022. Meanwhile, 44.6% operated at 70% to 89% capacity, while 36.7% operated below 70% capacity.
