Philippine manufacturing production likely expanded by 24 percent in January on exports growth and strong domestic demand, according to Moody’s Analytics.
In 2013, the increase in manufacturing production, measured in terms of volume, accelerated to 14.2 percent from 7.5 percent the previous year.
The favorable performance of the manufacturing sector was punctuated by the 26.5-percent annual growth rate registered in December, the fastest in nearly four years.
The top sub-sectors that drove the expansion in December were chemicals, as well as furniture and fixtures, which grew by an annualized pace of 231 percent and 186 percent, respectively.
Other sub-sectors that registered substantial increase in production were non-electrical machinery (60 percent), leather products (49 percent), tobacco products (44 percent), transport equipment (40 percent), rubber and plastic products (25 percent), fabricated metal products (21 percent), and electrical machinery (16 percent).
Moody’s Analytics said in its latest outlook on Asia-Pacific economies that the Philippines’ manufacturing sector could sustain, if not surpass, its performance last year given improving global demand.
Last year, Philippine exports fell short of target, growing by a mere 3.6 percent to $53.98 billion compared with the 10-percent goal.
The shortfall was due to economic problems in export markets, including the United States, Japan, and Europe, that dragged Philippine exports.
Global demand started to pick up only toward the end of 2013 given the stimulus measures implemented in the major economies.
Domestic demand, therefore, was the major driver of manufacturing growth last year.
This year, Moody’s Analytics said, both domestic demand and exports are expected to boost output of manufacturers. Michelle V. Remo