The year-on-year decline in factory output in the country further narrowed in September as the economy gradually opened up, auguring well to economic recovery moving forward, the government reported on Thursday.
The Philippine Statistics Authority’s (PSA) monthly integrated survey of selected industries for September showed that the volume of production index (VoPI)—a proxy for factory output—dropped 8.4 percent from year-ago level.
PSA data nonetheless showed that the VoPI drop in September was the smallest since April’s record 37.5-percent slide.
“The major contributors to the slower decline in VoPI for the manufacturing sector in September were the two-digit expansions observed in basic metals and food manufacturing with annual increases of 14.4 percent and 10.2 percent, respectively,” the PSA said in a report. The decline in the production of 10 other industry groups also slowed in September, resulting in the narrower VoPI for the month.
Also, the contraction in the value of production index (VaPI) was at 11.9 percent last September—the narrowest since March or at the onset of the longest and most stringent COVID-19 lockdown in the region that put a halt to 75 percent of the economy.
The PSA said the increase in value of basic metals, chemicals, food, as well as miscellaneous manufactures churned out by the country’s factories that month contributed to the improvement in VaPI.
In a statement on Thursday, state planning agency National Economic and Development Authority (Neda) attributed the improving external trade and manufacturing figures to the easing of quarantine restrictions currently being undertaken.
“The significant improvement in the country’s trade performance in September suggests that the country’s approach to gradually reopen the economy, along with the strict observance of health protocols, puts us on the right track towards economic recovery,” the Neda said. —BEN O. DE VERA