Quantcast
Latest Stories

Manufacturing output grew by 20.4% in May

Strong domestic demand more than offset decline in exports

By

The country’s manufacturing sector posted an impressive performance in May, with the volume of production index (VoPI) reaching the highest level in seven months on the back of a robustly growing domestic demand.

Strong domestic demand for goods more than made up for the slack in exports during the month, prompting manufacturers to beef up production.

The National Statistics Office reported Wednesday that the volume of  manufacturing output, measured in terms of VoPI, grew year-on-year by 20.4 percent in May. This was the fastest growth rate registered since September 2010. In April, the VoPI grew by 8.7 percent.

Recording a similar trend, the value of production index (VaPI), which measures output in terms of value, grew year-on-year by 9.7 percent in May, reversing the 1.6-percent decline recorded the previous month.

The encouraging development in the manufacturing sector bolstered hopes for the Philippine economy to rely less on consumption and more on investments for growth.

Economists say that boosting the industrial  sector is an effective strategy to sustain the robust economic growth seen recently. The government is, thus, urged to implement projects and programs geared toward the development of the manufacturing sector.

An improving performance of the sector is widely believed to help generate jobs for people in the low-income segment and facilitate poverty-reduction efforts.

Arsenio Balisacan, director general of the National Economic and Development Authority, said he wanted to see the share of the manufacturing sector to the country’s gross domestic product to increase significantly.

He said that from 39 percent in the early 1980s, the manufacturing sector’s output fell to about 33 percent in 2012.

“The industry sector, particularly manufacturing, has a crucial role to play in helping us achieve rapid and inclusive growth. But we need to reverse its stagnation and decline,” Balisacan said in a speech during a forum organized by the National Academy of Science and Technology.

He noted that the case of Thailand was different and enviable, in that the share of the manufacturing sector to its economy grew from 30 percent in the 1980s to 44 percent last year.

Balisacan said the performance of the Philippine manufacturing sector so far in 2013 was encouraging, but this should be sustained over the long term to enable the economy to enjoy its poverty-reduction benefits.

In the first quarter, the industry sector grew by 10.9 percent, partly driven by the 9.7-percent expansion of manufacturing. This happened despite the drop in exports, indicating strong domestic demand.


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 , domestic demand , Exports , manufacturing sector , VoPI

  • Chrisnadal19

    good news. more growth for manufacturing please.. the hope of our transformation. services sector is forecast to grow slower while agriculture is not reliable.



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
Advertisement
Advertisement

News

  • Suspect in Vhong Navarro’s mauling wants to turn state witness – De Lima
  • Why are Americans obsessed with missing plane?
  • Napoles to have surgery on Tuesday – report
  • Mayor’s assassination linked to black sand mining controversy
  • Initial batch of Etihad passengers tested negative for MERS-CoV
  • Sports

  • PBA D-League: Waves edge skidding Superchargers
  • Ilad’s last-second basket lifts Gems over Bakers
  • Reigning champs Miami open playoffs with win
  • Spurs subdue Mavericks in playoff opener
  • Wawrinka beats Federer to win Monte Carlo Masters
  • Lifestyle

  • Miss America: Don’t suspend teen over prom invite
  • Transitions and resurrection in the performing arts
  • ‘Archaeology tour’ of Cebu’s heritage of faith
  • Historic Fort Bonifacio tunnel converted into a septic tank
  • ‘Imports’ from London, and play of the year
  • Entertainment

  • Arrest warrants out vs. Deniece Cornejo, Cedric Lee, et al over serious illegal detention
  • Lindsay Lohan says she had a miscarriage
  • Discovery network cancels Everest jump
  • ‘Captain America’ stays strong atop US box office
  • Easter musings
  • Business

  • Century Pacific Food sets IPO price at P13.75 per share
  • Oil prices down in quiet Asian trade
  • Asian shares mixed in holiday-thinned trade
  • BDO seen keen on bidding for Cocobank
  • Bataan freeport investment pledges up 1,302%
  • Technology

  • PH has slowest internet in Southeast Asia
  • Nintendo’s trailblazing Game Boy marks 25th anniversary
  • Nasa’s moon-orbiting robot crashes down
  • Netizens pay respects to Gabriel Garcia Marquez
  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Opinion

  • Gigi’s home
  • Palace stonewalls on MRT inquiry
  • Couple of things too
  • There is plenty of water behind Wawa Dam
  • Triduum thoughts of a young boy
  • Global Nation

  • Filipinos in Middle East urged not to panic amid MERS-CoV scare
  • Obama on mission to quiet Asia skeptics
  • Search for Etihad passengers launched
  • Japan presents $57-B ‘dream plan’ to solve Metro congestion
  • Tim Tebow’s charity hospital in Davao seen to open in 7 months
  • Marketplace