Exports down, manufacturing weakens
The value of Philippine-made goods shipped overseas last April fell by 4.1 percent year-on-year as demand in major markets remained fragile.
The Philippine Statistics Authority (PSA) also reported that factory output growth, as measured by the volume of production index or VoPI, slowed to 1.4 percent at the start of the second quarter, from a robust 10.8 percent a year ago. It was also slower than March’s 16.1-percent expansion.
The $4.376 billion in export sales posted last April were lower than the $4.563 billion recorded in the same month last year, bringing total exports during the first four months of 2015 to $18.623 billion. It was 1.2-percent lower than the $18.840 billion seen at the end of April 2014, preliminary PSA data showed. (See related story on Page B4)
“The decline is partly reflective of fragile global economic conditions, as most trade-oriented economies in East and Southeast Asia also registered negative export performance in April, with only Vietnam in positive territory. Weaker demand conditions in some of our major trading partners, particularly China, were seen,” Socioeconomic Planning Secretary Arsenio M. Balisacan said in a statement.
Balisacan, who is also director-general of the National Economic and Development Authority (Neda), warned that in the near-term, “the country’s export sector remains vulnerable to declining demand” from major trading partners.
“The softening of economic activity in China [and] the still fragile economic growth of Japan remain a downside risk for the Philippine export sector,” he said.
The country’s top 10 destination of exports in April were Japan, the United States, China, Hong Kong, Singapore, South Korea, Germany, Taiwan, Thailand and the Netherlands.
Last April, slower sales of agro-based, mineral and oil products pulled down total exports.
Petroleum shipments registered a sharp 94.8-percent year-on-year drop, as “falling crude oil prices in the international market continue to partly affect the country’s exports,” Balisacan explained.
Also, the PSA also reported that growth in manufacturing activities slowed last April despite the higher output in the following sectors: Basic metals, beverages, chemicals, tobacco, furniture and fixtures, leather, machinery (except electrical), paper and paper products, printing, and textiles.
The manufacturing sector’s value of production (VaPI) last April dropped by 4.2 percent, reversing the 10.9-percent growth seen a year ago and the 9.7-percent expansion posted in March.
Average capacity utilization also slightly slipped to 82.3 percent in April from 83.5 percent last March, according to the latest Monthly Integrated Survey of Selected Industries.
Balisacan nonetheless pointed out that greater investor interest in the country would soon bolster manufacturing.
“Despite the April numbers, investors remain confident of the growth prospects. Proof of this is the recent expansion of Taiheiyo Cement Philippines Inc.’s facilities in San Fernando, Cebu, to boost capacity in anticipation of higher demand for construction materials,” Balisacan said, noting that a number of Japanese firms are also set to relocate to the country.
