Industrial production growth likely sped up at the start of the year as local factories benefited from stronger demand from overseas and cheaper fuel, Moody’s Analytics said in a new report.
Moody’s Analytics, an affiliate of rating firm Moody’s Investor Service, said strong domestic demand may have also resulted in higher volumes from local producers.
Moving forward, production is expected to continue to improve, helping the Philippine economy grow at a faster pace.
“Manufacturing is performing well in the Philippines thanks to improved global demand led by the US and buoyant domestic demand, and both markets are expected to improve further in 2015,” the think tank said.
In January, factory output measured by volume likely increased by at least 8.1 percent, better than December’s 7.5 percent, Moody’s said. Data for industrial production will be released this week.
“The Philippines is a net energy importer so manufacturers are benefiting from lower input costs,” the firm said.
Growth in factory output last December was attributed to the expansion in production output observed in 12 major sectors, with consistent three-digit increases reported by printing at 269.7-percent growth.
Other major sectors that recorded significant increases include: beverages (42 percent), basic metals (42 percent), wood and wood products (33.6 percent) and fabricated metal products (15.7 percent).
However, the 2014 average annual growth rate of 7.5 percent was slower than the 13.9 percent recorded in 2013.