Filipino workers at the Toyota Autoparts Philippines assembles transmission at their manufacturing plant in Santa Rosa, Laguna, on September 21, 2004. AFP
Manufacturing growth in June likely matched the previous month’s expansion as both domestic and external demand for locally made goods continued to recover, the research arm of Moody’s Corp. said.
“Philippine industrial production growth likely held at 5.8 percent year-on-year in June. The archipelago’s manufacturers are benefiting from stronger demand at home and abroad,” Moody’s Analytics said in a report.
In May, manufacturing, as measured by the volume of production index, expanded by a slower 5.8 percent from 7.4 percent a year ago, although faster than April’s 4.3 percent, on the back of “the increase in production of construction- and export-oriented products, [including] basic and fabricated metals, and non-metallic mineral products,” the state planning agency National Economic and Development Authority said last month.
The government will release the Monthly Integrated Survey of Selected Industries for June, which measures manufacturing growth, on Thursday.
“Domestically, private investment and consumption are expanding rapidly as positive demographics and infrastructure improvements propel the economy towards GDP [gross domestic product] growth around 7 percent,” Moody’s Analytics noted.
Last week, Socioeconomic Planning Secretary Ernesto M. Pernia said the GDP would likely grow by 7 percent this year on expectations of sustained recovery in the agriculture sector coupled with strong growth in the industry and services sectors.
Pernia, who is also Neda chief, had told legislators that the country “remains on track in meeting the midrange of its full-year target of 6.5-7.5 percent GDP growth for 2017.”
For the GDP to expand by about 7 percent this year, quarterly growth of 7.2 percent must be posted in the second to fourth quarters following the 6.4 percent in the first quarter.
The government will announce the second quarter GDP growth figure on Aug. 17.
Also, Moody’s Analytics added that “external demand for Philippine goods, particularly electronics, is improving thanks to the synchronized upswing in global economic conditions.” CBB