Manufacturing growth is expected to ease in July even as domestic demand remained robust, the research arm of Moody’s Corp. said.
“Industrial production on a volume basis is likely to lift 7.3 percent year-on-year in July from 8.1 percent year-on-year in June,” Moody’s Analytics said in a report last Friday. The government will release the latest manufacturing data on Tuesday.
“While industrial production growth has eased through the first half of 2017, the medium-term outlook for the Philippines’ manufacturing sector remains bright. In large part, that reflects a likely pick up in capital expenditure, which should provide a boost to local manufacturing,” Moody’s Analytics said.
“Domestic demand also remains on a solid footing, keeping food production buoyant, the largest component of the industrial production survey,” it added.
Last month, the state planning agency National Economic and Development Authority reported that during the first six months, the manufacturing sector expanded by an average of 10 percent, faster than the 9 percent posted last year, on the back of “sustained domestic and improved external demand.”
“This growth was backed by increased production in food manufacturing, basic metals, transport equipment, fabricated metal products, non-metallic mineral products, and export-oriented products,” according to Neda.
Socioeconomic Planning Secretary Ernesto M. Pernia had said he was bullish about manufacturing moving forward, adding that “growth is expected to be sustained into the second semester.”
“Looking ahead, the outlook for the manufacturing sector remains optimistic on the back of favorable domestic conditions such as stable inflation rate, robust economic demand, increased investments and business confidence,” according to Pernia, who heads Neda.