Factory output improved in Feb

INDUSTRIAL production may have improved slightly in February after the lackluster performance at the start of the year, driven by the economy’s growing demand for food.

Think tank Moody’s Analytics said local factories’ output would continue to be weighed down by cheap fuel prices, which had led to a decline in petroleum and chemical production worldwide.

“Food production has been a bright spot, helped by buoyant domestic demand,” said Moody’s Analytics, an affiliate of credit ratings firm Moody’s Investor Service.

In February, industrial production volume may grow by 4.5 percent verses January’s 3.3 percent, the company said in a note to clients on Friday.

“February’s Lunar New Year celebrations likely added volatility to the monthly data. Looking through the seasonality, chemical and petroleum production has been struggling with the slump in global energy prices,” the firm said.

In January, factory output by value dipped 1.8 percent versus the 3.3-percent expansion in December of last year. By volume, factory output growth was slower at 3.3 percent versus December’s 6.7 percent.

Data for industrial production will be released on Monday.

In February, products shipped by Philippine companies fell by 3.1 percent over the same month last year. Month-on-month, exports were up 1.2 percent.

In the three months ending February, exports, which are tracked closely by industrial production, were down 37.1 percent from the previous three-month period.

February’s export contraction tracks the performance of most other Asian countries. Only China saw its exports grow in February among major Asia Pacific countries, National Economic Development Authority (Neda) said. Paolo G. Montecillo