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

  • Slain officer’s ‘diagram’ rocks PNP
  • 2 contractors fined P25,000 for delays in Edsa rehab
  • Luisita beneficiaries take over renters
  • 5 years of hard work pay off for top UP grad
  • Art, music, book sale mark Earth Day at Arroceros park
  • Sports

  • Galedo caps ride of redemption
  • Beermen, Express dispute second semis slot today
  • Lady Agilas upset Lady Bulldogs in four sets
  • NLEX roars to 7th D-League win
  • Zaragosa, Park forge PH match play duel
  • Lifestyle

  • Summer Mayhem: The ultimate beach experience
  • A haven for steak lovers
  • Gongs and southern dances star in a workshop at San Francisco Bayanihan Center
  • This woman ate what?
  • Photos explore dynamics of youths’ sexual identity
  • Entertainment

  • Kristoffer Martin: from thug to gay teen
  • Has Ai Ai fallen deeply with ‘sireno?’
  • California court won’t review Jackson doctor case
  • Cris Villonco on play adapted from different medium
  • OMB exec’s assurance: We work 24/7
  • Business

  • Gaming stocks gain, PSEi eases on profit-taking
  • Cebu Pacific flew 3.74M passengers as of March
  • Corporate bonds sweeteners
  • Professionals in the family business
  • Foreign funds flowed out in Q1, says BSP
  • Technology

  • Vatican announces hashtag for April 27 canonizations
  • Enrile in Masters of the Universe, Lord of the Rings?
  • Top Traits of Digital Marketers
  • No truth to viral no-visa ‘chronicles’
  • ‘Unlimited’ Internet promos not really limitless; lawmakers call for probe
  • Opinion

  • Editorial Cartoon, April 25, 2014
  • No deal, Janet
  • Like making Al Capone a witness vs his gang
  • MERS-CoV and mothers
  • A graduation story
  • Global Nation

  • US4GG: Aquino should ask Obama for TPS approval, drone technology
  • Complex health care system for California’s elderly and poor explained
  • Tiff with HK over Luneta hostage fiasco finally over
  • DOLE sees more Filipinos hired by South Koreans
  • Filipinos second-shortest in Southeast Asia
  • Marketplace