Latest Stories

Moody’s upbeat about PH manufacturing sector

Influx of local, foreign investors boost output


Moody’s Investors Service is upbeat about manufacturing output in the Philippines, citing nascent growth in the sector resulting from rising investments.

“Rising local and foreign investments, and better manufacturing production are helping to drive output higher, aided by solid local demand from consumers,” Moody’s said in a recently published outlook report for the Asia-Pacific.

Substantiating its favorable sentiment, the international debt rating firm said it expects industrial production in the Philippines to have grown year on year by 8 percent in January (official data are scheduled to be released by the National Statistics Office on March 12).

In the same month last year, growth in the value of industrial production was registered at 2.6 percent.

“The industrial production series is volatile but, looking through the noise, production has been steadily accelerating since around mid-2012,” Moody’s said.

The comments of the credit watchdog are consistent with observations of economists about early signs of an improving manufacturing sector in the Philippines.

While the services sector, led by the rapidly expanding business process outsourcing (BPO) companies, have largely driven growth of the Philippine economy in the last few years, the industrial sector had substantially improved in 2012.

The industrial sector grew by 6.5 percent last year, significantly accelerating from the growth of 2.3 percent in 2011.

The government said growth in industries last year was due to rising investments, which were aided by robust household consumption and the encouraging outlook on the Philippine economy.

The Philippine economy grew by 6.6 percent last year, posting one of the fastest growth rates in Asia during the period.

Given its favorable performance last year—during which advanced economies continued to struggle with serious debt problems—the Philippines has been recognized for being resilient. In 2009, the Philippines was likewise cited for avoiding a recession when most advanced economies contracted.

Economists said, however, that the Philippines continues to face the challenge of making the benefits of a growing economy translate into poverty reduction. So far, they said, the middle class and the rich are the ones mostly reaping the benefits of a growing economy.

For the Philippines to trim the significant poverty incidence in the country, they said, growing investments in the manufacturing sector should be sustained for the medium to long term.

Unlike a growing services sector, economists said, an expanding manufacturing sector is more capable of helping reduce poverty. This is because the manufacturing sector offers employment even to those with relatively lower levels of educational attainment.

Follow Us

Follow us on Facebook Follow on Twitter Follow on Twitter

Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Business , Debt Rating , Investment , manufacturing , Moody's , News

  • Handiong

    “Rising local and foreign investments,…”
    Of course, the naysayers, deniers, gripers, slackers, and whiners, with their heads buried in the sand, will say that there are no investments coming in. 

Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94


  • Camilla’s brother dies in US after head injury
  • Luisita farmers storm DAR compound
  • Trillanes, Ejercito confident they are not in Napoles’ list
  • Easterlies to prevail in Luzon, Visayas
  • Lacson eyes P106-B ‘Yolanda’ rehab masterplan
  • Sports

  • Mixers trim Aces; Painters repulse Bolts
  • Donaire junks Garcia as coach, taps father
  • ’Bye Ginebra: No heavy heart this time
  • UAAP board tackles new rules
  • Baguio climb to decide Le Tour de Filipinas
  • Lifestyle

  • Photos explore dynamics of youths’ sexual identity
  • 12th Philippine Food Expo set at the World Trade Center
  • No tourist draw, Malang the croc will remain wild
  • The best flavors of summer in one bite, and more
  • Homemade yogurt, bread blended with pizza, even ramen
  • Entertainment

  • Sony developing live-action Barbie comedy
  • California court won’t review Jackson doctor case
  • Return of ‘Ibong Adarna’
  • Practical Phytos plans his future
  • In love … with acting
  • Business

  • Facebook profits triple as mobile soars
  • Insular Honors Sales Performers at Testimonial Rites
  • Apple increases stock buyback, will split stock
  • Cost-recovery provisions for affected gencos urged
  • This time, BIR goes after florists
  • Technology

  • Top Traits of Digital Marketers
  • No truth to viral no-visa ‘chronicles’
  • ‘Unlimited’ Internet promos not really limitless; lawmakers call for probe
  • Viber releases new design for iPhone, comes to Blackberry 10 for the first time
  • Engineers create a world of difference
  • Opinion

  • Editorial cartoon, April 24, 2014
  • Talking to Janet
  • Respite
  • Bucket list
  • JPII in 1981: walking a tightrope
  • Global Nation

  • Filipinos in Middle East urged to get clearance before returning
  • PH seeks ‘clearer assurance’ from US
  • China and rivals sign naval pact to ease maritime tensions
  • What Went Before: Manila bus hostage crisis
  • Obama arrives in Tokyo, first stop of 4-nation tour
  • Marketplace