Imports up 4.1% to $6.1B in Aug

IMPORTS posted growth for the third straight month in August as the value of shipments of raw materials for manufacturing as well as finished goods increased ahead of the holiday and election seasons, the government reported yesterday.

A preliminary report of the Philippine Statistics Authority (PSA) showed that the amount of imported products that came in last August rose 4.1 percent to $6.082 billion from $5.845 billion a year ago.

According to the PSA, imports of five major commodity groups recorded increases in August: Electronic products; food and live animals; industrial machinery and equipment; medicinal and pharmaceutical products, and miscellaneous manufactured articles.

The growth posted in August was slower than the 22.6-percent and 23-percent jumps registered in June and July, respectively.

With three consecutive months of imports growth since June, end-August shipments reached $43.651 billion, up 1.5 percent from $43.020 billion in the first eight months of last year.

The robust imports in August was attributed by the National Economic and Development Authority (Neda) to “higher payments for raw materials, intermediate goods and consumer goods.”

“Merchandise imports growth is expected to maintain its growth momentum until the end of the year. This outcome supports our view that domestic consumption will be the main driver of economic growth, at least in the short term, while the manufacturing sector is seen to remain vibrant,” Neda Director General and Economic Planning Secretary Arsenio M. Balisacan said in a statement.

In August, the value of imported raw materials and intermediate goods, which compose about 45 percent of total imports, grew by 41.2 percent year-on-year to $2.8 billion.

Imports of finished consumer goods jumped by 19 percent year-on-year to $1 billion in August “due to higher purchases of both durable goods and non-durable goods,” Neda said.

“Imports of raw materials and intermediate goods as well as consumer goods will provide the boost going forward. Ramped-up importation for these commodity sub-sectors suggests an upward tick in the coming months as the manufacturing sector is expected to increase production in anticipation of increased demand during the holiday season,” Balisacan said.

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