Factory growth output up by double-digit pace
Growth in manufacturing rose by its fastest pace last March, mostly on higher production of oil, metals, tobacco and chemicals.
Socioeconomic Planning Secretary Arsenio M. Balisacan told reporters on Tuesday that, although consumption might be tempered due to lower remittance flows in the first three months of the year, robust manufacturing would still support economic growth during the period.
The Philippine Statistics Authority (PSA) reported that factory output, as measured by the volume of production index (VoPI), grew by 13.6 percent in March—the highest growth rate in over a year. It was a reversal of the 0.02-percent decline posted in the same month last year.
Last March, the VoPI of 8 of the 14 major sectors rose—petroleum was up by 95.9 percent, metals by 73.9 percent, tobacco by 72.4 percent, chemicals by 63.5 percent, textiles by 30.1 percent, printing by 17.5 percent, beverages by 12.4 percent, and leather goods by 11.3 percent.
“This rebound in March suggests a promising first-quarter manufacturing performance. The Philippine business sector maintains expectations of favorable performance in the near term and growth drivers in the past year are expected to perform positively in the next period,” according to Balisacan, who is also director general of the National Economic and Development Authority (Neda).
Balisacan said the surge in imports last February, which comprised mainly manufacturers’ capital and intermediate goods, supported domestic production. He described it as an “encouraging” development, as far the first-quarter gross domestic product (GDP) was concerned.
Robust manufacturing is seen to compensate for a possible dent in consumer spending due to potentially lower remittances from Filipinos abroad, the Neda chief said.
The latest Monthly Integrated Survey of Selected Industries (Missi) for March also showed that the growth in the value of production index (VaPI) likewise jumped to 7.4 percent from 0.03 percent in the same month last year, PSA data showed.
“For consumer goods, production value of tobacco and beverages continued to be vigorous through the first quarter. For intermediate goods, production values in all except for wood products expanded year-on-year. Petroleum posted a 60-percent growth in production value and a 95.9-percent growth in production volume,” Neda said.
