Imports jumped 7.2% to $5.71B in September

The country’s imports climbed in September as manufacturers purchased more inputs in preparation for a Christmas season-induced increase in demand by local and foreign buyers.

Merchandise imports rose year-on-year by 7.2 percent to $5.71 billion during the month, the National Statistics Office reported Tuesday. This brought total imports for the first three quarters to $46.36 billion, up by only 0.03 percent from a year ago.

“The rise of imports in September mirrored the buoyant outlook of firms on the volume of business activities,” Economic Planning Secretary Arsenio Balisacan said in a statement.

The country’s chief economist noted that demand normally would spike during the Christmas season when people use yearend bonuses to buy consumer items.

Balisacan, who is also director general of the National Economic and Development Authority, said the rise in imports in September also was an indication that manufacturers were expecting an increase in global demand for electronics and other goods in the months ahead through 2014.

Electronics accounted for about 31 percent, or $1.76 billion, of imports in September. Local manufacturers process electronic inputs and export these to companies that produce consumer electronics such as computers and cellular phones.

Raw materials and intermediate goods, which include electronics among other inputs for production, accounted for 42 percent, or $2.4 billion, of imports during the month.

Capital goods, which are meant to help increase production, accounted for 29 percent or $1.64 billion of the total import bill for the month.

Consumer goods accounted for only 12 percent or $663 million of the September imports.

Balisacan said  the rise in imports of inputs for production signaled a more solid rebound of Philippine exports in 2014.

The country’s exports has recovered since June from a decline in the first semester. However, the rebound has so far been insufficient to put the country on track to hitting the full-year exports growth target of 10 percent.

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