Factory output at five-month high in June
The country’s manufacturing output reached a five-month high in June on sustained domestic demand, government data showed.
Based on latest data from the Philippine Statistics Authority (PSA), industrial output also grew 4.7 percent and 8.5 percent, respectively, in terms of value and volume compared to the same period last year.
“This signifies an improvement from the subdued growth in 2015 and reflects the sector’s strong production growth since the beginning of the year,” Economic Planning Secretary Ernesto M. Pernia said in a statement.
June 2015 data from PSA showed a 7.9-percent decline in value and a 1.7-percent decrease in volume.
Pernia added the strong growth of the manufacturing sector indicated a resilient domestic economy supported by stable macroeconomic policies.
Pernia, also the Director-General of the National Economic and Development Authority, warned industrial output was expected to weaken toward the third quarter.
He said this was due to a seasonal slack caused by interruption of business activities during the rainy season, lower consumer demand and expectations of higher oil prices.
Results from the PSA’s latest monthly integrated survey of selected industries (MISSI) showed eight industries recorded growth in output value in June. MISSI covers a total of 20 major industries.
Leading the gainers were basic metals with 58.7 percent and transport equipment with 41.4 percent.
In terms of volume, double-digit increases were observed in eight industries, led also by basic metals (76.9 percent) and transport equipment (39.7 percent).
“The government aims to accelerate regional and rural development, which will further boost domestic demand and investments, and provide additional employment in the near term,” Pernia said.
“It is important for complementary initiatives to enhance agricultural productivity and to strengthen linkages across all production sectors to fast-track rural development necessary in achieving genuinely inclusive growth,” he added.
Pernia also said the provision of adequate and reliable infrastructure must be accelerated, as well as the review of bureaucratic and regulatory procedures to ensure that business-related operations, processes and laws were appropriate for the current market conditions and societal needs.
