Upswing in global demand boosts PH manufacturing sector

Manufacturing output likely expanded by a faster 4.1 percent year-on-year in September on the back of recovery in global demand, the research arm of Moody’s Corp. said.

The industrial production growth forecast for September of Moody’s Analytics was faster than the 2.7 percent posted in August.

The government will release on Friday manufacturing data for September.

“Although the Philippines has a small export-manufacturing sector compared with other economies in the region, industrial production has still benefited from the upswing in global demand,” Moody’s Analytics said.
“Exports of electronics and components are up 10.9 percent year-on-year in the year to August, after a 1.8-percent rise in the same period last year,” it noted.

It said strong external demand and rising investments, which were driving up production of products such as cement, were expected to continue supporting industrial production.

The Philippine Statistics Authority’s Monthly Integrated Survey of Selected Industries for August showed that the Volume of Production Index or VoPI, a proxy for manufacturing output, reversed the 3.5-percent drop in July although slower than the 13.3-percent jump in August last year.

State planning agency National Economic and Development Authority had expressed optimism that manufacturing growth would further “improve” in the fourth quarter on expectations of more construction activities in line with the ambitious “Build, Build, Build” infrastructure program.

The Duterte administration early this year unveiled the “Build, Build, Build” program aimed at ushering in “the golden age of infrastructure” in the country after years of neglect.

Under the program, the government would roll out 75 flagship, “game-changing” projects, with about half targeted to be completed during President Duterte’s term, alongside plans to spend up to P9 trillion on hard and modern infrastructure until 2022.