PH factory output still down as production by major industries falls by double digits
Factory output contracted for the 11th consecutive month in October prompting the National Economic and Development Authority (Neda) to push for the timely passage of the proposed P4.1-trillion 2020 national budget to ignite government infrastructure spending and arrest slower manufacturing output.
The Volume of Production Index (VoPI) dropped 3.7 percent last October, according to the latest Philippine Statistics Authority’s (PSA) Monthly Integrated Survey of Selected Industries (Missi) released on Thursday, Dec. 5.
A measurement of factory output, VoPI has been dropping year-on-year since December last year.
In a report, the PSA said the decline in VoPI in October is attributable to lower production in nine major industry groups—furniture and fixtures, 32 percent; miscellaneous manufactures, 23 percent; petroleum products, 17.5 percent and electrical machinery, 17.3 percent.
The value of production index (VaPI), which measures the costs of goods produced, fell for 11 straight months until October, posting a decline of 4.3 percent.
The PSA said costs of good produced fell by double digits in five major industries—petroleum products, 25.6 percent; miscellaneous manufactures, 22.3 percent; electrical machinery, 20.4 percent; basic metals, 13.5 percent and textile, 10.8 percent.
Despite fewer goods being produced, “business and consumer outlook remains positive,” said Socioeconomic Planning Undersecretary Adoracion M. Navarro.
The optimism is carried over by “anticipation of higher consumer spending during the holiday season,” Navarro said in a statement.
Two other reasons to be optimistic, he said, are “favorable macroeconomic conditions and a likely recovery in government spending on infrastructure.”
Two things are needed, though, to sustain government spending and drive growth in manufacturing—extension of validity of the 2019 national budget and timely passage of the 2020 spending plan, Navarro said.
Edited by TSB
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