Growth in factory output slowed to a trickle in July

Manufacturers’ output expanded by 4.7 percent in July, slower than the previous month’s pace as production in electrical machinery, chemical products and non-metallic products decelerated, the National Statistics Office (NSO) on Friday said.

The July factory output marked a slowdown from the revised 11.2 percent in June, the NSO said.

The slowdown in manufacturing output reveals the lethargy now affecting the electronics sector, said Cid Terosa of the University of Asia and the Pacific.

“If the electronics sector improves … the next few months would show a better manufacturing performance,” he said.

Year-on-year, production of electrical machinery increased 6.8 percent, while chemical products and nonmetallic mineral products grew by 0.9 percent and 0.1 percent, respectively.

Also, 9 of the 20 major sectors included in the Monthly Integrated Survey of Selected Industries (MISSI) posted double-digit increases in their volume of production.

The gainers include furniture and fixtures (151 percent), leather products (97.4 percent), and footwear and wearing apparel (78.7 percent).

On the other hand, the sectors that posted year-on-year decline in production volumes include basic metals (-39.8 percent), tobacco products (-35.1 percent), publishing and printing (-31.1 percent).

On a monthly basis, the volume of production index dipped 0.9 percent in July from the previous month’s revised growth of 12.4 percent.

In terms of value of production, the total manufacturing industry grew 4.6 percent year on year in July from the revised 8.7 percent in June.

Average capacity utilization in July stood at 83.3 percent, with 11 major sectors registering capacity utilization rates of 80 percent or more.