July import bill drops as mineral-fuel payments dip

Philippine imports declined slightly in July, a reversal of the double-digit growth seen in the previous month, as payments for mineral fuels dipped, official figures showed.

The National Statistics Office (NSO) said inbound shipments in July were valued at $4.96 billion, down 0.8 percent from $5 billion in the same month last year.

In June, imports rose by 13 percent, the fastest since August last year.

Cid Terosa of the University of Asia and the Pacific said the lower import figure was an indication of a declining manufacturing and exports activities.

“In the coming months, imports may pick up due to strong domestic consumption spending,” Terosa said.

Month on month, imports fell by 2.5 percent to $5.089 billion in July.

Total imports from January to July was up 0.2 percent to $35.712 billion from $35.655 billion in the same period last year.

The NSO said that total external trade in goods in July picked up by 2.4 percent to $9.691 billion from $9.462 billion in the same month last year.

The increase could be attributed to the revised 6 percent growth in exports to $4.727 billion in July.

This resulted in a trade deficit of $236 million in July from $541 million a year ago.

Electronics, which accounted for almost a fourth of the total imports, expanded by 4.8 percent in July to $1.223 billion from $1.167 billion in the same month last year.

Semiconductors, which made up the bulk of electronics imports, posted a 6.6-percent growth during the month to $902.66 million from $846.49 million a year ago.

In contrast, mineral fuels, lubricants and related materials, the second-biggest import, dropped by 12.3 percent to $1.152 billion in July from $1.313 billion last year.

Industrial machinery and equipment was the third-top import during the month, valued at $297.64 million, a 28.2 percent increase from $232.25 million in the previous year.

Japan was the country’s top source of imports in July accounting for $573.57 million, up 19.1 percent from $481.44 million in July 2011.

Imports from China were down by 6.7 percent to $538.81 million, from $577.79 million in July last year. Inbound shipments from the United States grew by 8.7 percent to $501.28 million from $461.01 million last year.