Manufacturing sector volume rose in August

The country’s manufacturing sector posted an increase in production in August, supporting projections that the economy is poised to sustain a robust growth rate over the near term, largely on the back of strong domestic demand.

Volume of production by the country’s manufacturers grew by 18.3 percent in August from a year ago, faster than the 8.3 percent and the 14.9 percent registered in June and July, respectively, the National Statistics Office reported Thursday.

According to the NSO, the increase in the volume of output was led by furniture and fixtures, chemical products and leather products. Production for these segments rose year on year by 175.4 percent, 145 percent, and 101.9 percent, respectively.

Other top gainers during the month were basic metals, tobacco products, and beverages, production of which increased by 51.9 percent, 38.3 percent, and 36.3 percent, respectively.

In terms of value, output of the manufacturing sector rose by 10.7 percent in August from a year ago. This was faster than the 7.7 percent in July and the 0.5 percent in June.

Economic managers earlier said the Philippines is likely to maintain a faster growth rate despite uncertainties in the global economy that may dampen demand for exports from time to time. According to them, this is because of rising demand—both from enterprises and consumers—within the country.

They said the increase in domestic demand is reflected in the significant growth of the manufacturing sector seen recently.

Arsenio Balisacan, director general of the National Economic and Development Authority, said the Philippines may post another growth rate in the 7-percent territory for the third quarter. The economy grew by 7.7 percent in the first quarter and by 7.5 percent in the second quarter.