Manufacturing output continues to weaken

The volume of goods produced by factories in the country slid by a faster 16.7 percent year-on-year in January as 18 of 22 industry groups posted declines, the Philippine Statistics Authority (PSA) reported on Tuesday.

The PSA’s monthly integrated survey of selected industries (Missi) report for January showed that the decline in the volume of production index (VoPI)—a proxy for factory output—worsened from 12 percent in December last year and reversed the 1.9-percent growth posted a year ago.

It was the 11th straight month of year-on-year contraction in factory output volumes since the ongoing and prolonged COVID-19 quarantine started in March last year.

The PSA blamed January’s VoPI drop mainly on huge downturns in the following sectors: wood, bamboo, cane, rattan articles and related products (down 53.4 percent); machinery and equipment except electrical (down 48.9 percent), and tobacco (down 42.6 percent).

The continuing decline in the value of production index (VaPI) also widened to 21.1 percent last January from 15.4 percent a month ago and 1.7 percent a year ago.

Similar to the VoPI, the total value of factory output has been shrinking year-on-year since March 2020 when 75 percent of the economy stopped under the most stringent COVID-19 lockdown imposed in the region.

—Ben O. de Vera INQ
Read more...