Philippine factory output still weak

Manufacturing production remained weak with a 5.2-percent contraction in November 2011, although the decline was less drastic compared with the 10.8 percent drop in October, according to the National Statistics Office (NSO).

Economists said that given weak exports and, hence, imports, factory output tends to drop.

“Both imports and factory output show declining trends because of slow domestic and global market conditions last year,” said Dr. Cid L. Terosa of the University of Asia and the Pacific.

Out of 20 major sectors of manufacturing industry, 11 major sectors posted decreases in production volume in November 2011.

The five major sectors that posted double-digit decreases were machinery except electrical (29.8 percent), wood and wood products (28.8 percent), food manufacturing (28.2 percent), basic metals (13.3 percent) and textiles (10.8 percent).

Month on month, volume of production posted an increase of 7.5 percent in November 2011. Double-digit increases in output were observed in electrical machinery (41.1 percent), basic metals (13.8 percent), and furniture and fixtures (10.5 percent).

Average capacity utilization in November 2011 for total manufacturing stood at 83.2 percent.

Ten of the 20 major sectors registered capacity utilization rates of more than 80 percent, including basic metals (86.9 percent), petroleum products (86.6 percent), food manufacturing (86.5 percent) and electrical machinery (85.7 percent).