Manufacturing, exports, imports rose in October
The country’s exports, imports and the domestic manufacturing sector’s output all rose in October ahead of the holiday season and amid recovering global demand, the government reported Friday.
A preliminary Philippine Statistics Authority (PSA) report showed that merchandise exports rose for the second straight month last October, increasing 3.7 percent year-on-year to $4.76 billion.
The PSA attributed the sustained exports growth to increases in shipments abroad of coconut oil, electronic equipment and parts, electronic products, metal components, mineral products as well as ignition wiring set and other wiring sets used in aircraft, motor vehicles and ships.
Total exports from January to October, however, remained lower than a year ago as 10-month sales fell 5.3 percent to $46.45 billion due to soft global demand for the most part of the year.
Meanwhile, imports grew for the third consecutive month in October, rising 5.9 percent year-on-year to $6.92 billion.
PSA data showed higher values of imported goods belonging to seven commodity groups, namely food and live animals, industrial equipment and machinery, iron and steel, lubricants, manufactured articles, mineral fuels as well as transport equipment, at the start of the fourth quarter.
End-October imports jumped by a faster 13.1 percent to $66.43 billion.
In all, two-way merchandise trade increased 5 percent to a total of $11.7 billion in October, according to the National Economic and Development Authority (Neda).
Manufacturing also sustained its rapid growth last October on the back of increased production of non-electrical machinery, petroleum products and transport equipment, Neda said.
The PSA’s Monthly Integrated Survey of Selected Industries showed that the Volume of Production Index expanded by a faster 8.4 percent in October compared with the 1.5-percent growth posted a year ago.
The Value of Production Index, meanwhile, grew 4.3 percent to reverse the 6.2-percent drop during the same month last year.
The plan to raise infrastructure spending to 5.4 percent of the gross domestic product (GDP) next year and further jack it up to 7 percent of GDP by 2022 would augur well to boosting manufacturing output, according to Neda.
“With the Duterte administration’s commitment to fast-track the implementation of infrastructure projects and programs, construction-related manufactures will be a major contributor to the growth of the sector,” it noted.
Also, improved infrastructure “will further stimulate the expansion of the manufacturing sector as well as more easily connect producers to the value chain, and then to local and international markets,” the Neda explained. —BEN O. DE VERA
