Factory output volume back to growth path in May
MANILA -The volume of factory output grew by 8.1 percent in May, a reversal from the 0.6-percent contraction in the same month last year, thanks to greater production of electrical equipment as input costs declined.
Latest results of the Philippine Statistics Authority’s (PSA) Monthly Integrated Survey of Selected Industries show that the increase in output volume also improved from 7.7 percent a month ago.
In May, the PSA observed a 53.7-percent surge in the output of electrical equipment, which revved up from 19.2 percent in April.
The manufacture of electrical equipment contributed more than a quarter (27 percent) of the year-on-year increase in factory output last May.
The PSA said two other primary contributors to the year-on-year uptrend of output volume in May were the slower decline noted in manufacture of chemical and chemical products as well as the turnaround in the manufacture of beverages.
Also in May, the S&P Global Philippine Manufacturing PMI (purchasing managers index) rose to an eight-month best of 51.4 as both new orders and production expanded at quicker rates.
A PMI was above 50, which means an overall increase (more positive responses than negative). Less than 50 means an overall decrease (more negative answers than positive).
S&P Global said the headline PMI was above 50 for the 16th month in a row as the sector regained momentum after some loss in April.
The May PMI data was also supported by a quicker improvement in operating conditions and also with businesses beefing up their workforce for the first time in four months.