Growth in factory output picked up pace in Aug, PSA data show

The growth in factory output ratcheted up in August to 11 percent from 10.6 percent in July with the further reopening of the local economy.

Preliminary data from the Philippine Statistics Authority (PSA) also show that net sales surged faster at 26 percent in August from 23 percent in July.

In August, the most-improved among the 22 manufacturing industries in terms of net sales was the beverage industry while the worst performer was the furniture industry.

The increase in the value of production had simmered down to double digits after hitting three-digit levels last year.

In August 2021, the Value of Production Index rocketed by 531 percent as factory gates had opened from the harsh lockdowns of 2020.

Meanwhile, the Value of Net Sales Index has been revving up this year at double digits from single digit last year as demand gathers momentum.

Further, factories were operating at 71.4 percent of capacity in August, a slight increase from 71.3 percent in July.

Among the 22 manufacturing industries, 20 observed capacity utilization rates at more than 60 percent. The busiest were furniture at 83.3 percent; computer, electronic and optical products (81.7 percent), and wearing apparel (79.3 percent).

The PSA said about a quarter (26 percent) of the 634 businesses that took part in the Monthly Integrated Survey of Selected Industries in August were operating at “full capacity”—which means at least 90-percent capacity utilization rate.

Also, more than one-third (37 percent) of respondents were operating at 70-percent to 89-percent capacity, while 38 percent operated below 70-percent capacity.

In August, the S&P Global Philippine Manufacturing PMI (purchasing managers index) improved to 51.2, further up the neutral “50” compared to 50.8 in July.