PH factories posted fastest 2023 output growth in August

MANILA  -Factory output posted its fastest growth so far this year in August, demonstrating its resilience in the face of wage hikes and stubbornly high inflation.

A monthly survey of selected industries showed the volume of production index (VoPI), a measure of manufacturing output, grew 8.5 percent year-on-year in August, faster than the 4.9-percent annual growth in July, the Philippine Statistics Authority reported on Friday.

Broken down, the expansion was mainly driven by growth in manufacture of petroleum products, transport equipment and beverages.

Meanwhile, the average capacity utilization of factories was at 73.9 percent in August, almost unchanged from 73.6 percent in the previous month.

READ: PH manufacturing sector eked out slight gain in September

Domini Velasquez, chief economist at China Banking Corp., said local manufacturers tracked a regional upswing in output growth, defying pressures from recent wage hikes in Metro Manila and Calabarzon, as well as surging inflation.

Indeed, a bright future may be ahead for Filipino manufacturers if S&P Global’s purchasing managers’ index (PMI) is also to be believed. Data released earlier this week showed the Philippines’ PMI, another gauge of factory health, increased to 50.6 in September from 49.7 in August. INQ