The output of the manufacturing sector jumped 10.1 percent in July, on the back of the strong demand for food, construction supply and transport equipment, the National Economic and Development Authority said.
Preliminary results of the Philippine Statistics Authority’s (PSA) Monthly Integrated Survey of Selected Industries for July showed that the Volume of Production Index (VoPI) improved significantly compared with the 0.1-percent growth posted a year ago.
The PSA attributed the double-digit climb of the VoPI to “the significant expansion made by basic metals which surged by 64.1 percent on account of the non-ferrous metal industry [which] grew 501.8 percent in July.”
The Value of Production Index (VaPI), meanwhile, grew 5.6 percent to reverse the 6.6-percent contraction in the same month last year.
“Seven of the nine major sectors contributed to the rise in VaPI, namely: basic metals (up 56.9 percent), transport equipment (up 33.7 percent), rubber and plastic products (up 27.1 percent), tobacco products (up 19.8 percent), wood and wood products (up 18.5 percent), beverages (up 15.8 percent) and food manufacturing (up 15.7 percent),” the PSA said.
“The upbeat private consumption and investments continued to drive manufacturing growth. This growth shows that our economy has remained resilient to the continuing weakness in global demand for export-oriented manufactured goods caused by uncertainties such as low commodity prices and the EU debt crisis,” Economic Planning Secretary Ernesto M. Pernia said.
“Improved efficiencies, lower material prices, increases in out-of-home food consumption, and the growing number of convenience stores nationwide likewise contributed to the positive performance of food manufacturing,” added Pernia, who is also director general of the Neda.
However, Pernia cautioned that “seasonal factors like interruption of business activities during the rainy season, planting and closed milling season, and closed fishing season in Davao Gulf from July to September, are seen to affect industrial output in the third quarter.”
“Government interventions to support the performance of the manufacturing sector must be continued to ensure that the sector sustains its upward trajectory. Public and private investments in research and development must be encouraged to enhance the competitiveness of domestic manufacturers in the global market,” he said.
“Cost-effective power and telecommunication services must be available and accessible to attract investments and ensure continuous and efficient production,” he added.