Factory output jumped 11.8% in July
Factory output jumped 11.8 percent in July on the back of strong consumer spending given sustained demand for goods and services, the government reported Wednesday.
The Philippine Statistics Authority’s Monthly Integrated Survey of Selected Industries for July showed that the Volume of Production Index (VoPI) that month was a reversal from the 5.1-percent contraction a year ago.
The VoPI serves as a proxy for manufacturing output.
The PSA attributed the overall VoPI growth to the increase in output of seven major sectors, namely: fabricated metal products (up 39.7 percent); petroleum products (up 38.3 percent); textiles (up 33.5 percent); beverages (up 21.8 percent); miscellaneous manufactures (up 19.9 percent); basic metals (up 19.1 percent); and machinery except electrical (up 12.1 percent).
The Value of Production Index (VaPI) also jumped 12.2 percent in July, a reversal of the 6-percent decline last year.
“We expect this strong performance of the manufacturing sector this year as we continue to see stable domestic demand, as well as robust investments due to heightened infrastructure projects and consumer spending,” Socioeconomic Planning Secretary Ernesto M. Pernia said in a statement.
“Growth in the food subsector was due to strong household consumption and efficient market operations. Food manufacturing value was mainly driven by increases in the production value of animal feeds and sugar,” added Pernia, who heads the state planning agency National Economic and Development Authority.
Pernia also noted double-digit growth in production of refined petroleum products as well as basic metals and glass, as net sales of nonmetallic mineral products and basic metals increased.
The growth in the production of most export-oriented goods was also sustained in July, the Neda chief said.
As far as export products are concerned, “the growth in petroleum products, textile, beverages and nonelectrical machinery offset the declines in the production volume of tobacco, footwear and wearing apparel, wood products, and furniture and fixtures,” he said.
“High importation of raw materials and intermediate goods supported the increase in production levels of export-oriented goods,” according to Pernia.
Also, Pernia noted the recovery in production as well as sales of transport equipment last July, ending two straight months of decline. —BEN O. DE VERA
