June factory output up 4.4%, NSO says

Manufacturing output grew 4.4 percent in June due to the growth in 12 major sectors led by garments, furniture and wood, according to the National Statistics Office (NSO).

The latest number is an improvement from the revised figure in May, which showed a 4.1 percent contraction.

Year on year, footwear and apparel output expanded in June by 84.7 percent while furniture and fixtures grew 64.6 percent and wood and wood products, 50.7 percent.

The other gainers include transport equipment (46.1 percent), leather products (34.9 percent), machinery except electrical (29.5 percent), nonmetallic mineral products (22.5 percent), chemical products (20.5 percent), food manufacturing (13.1 percent), textiles (12.5 percent), electrical machinery (10.1 percent) and fabricated metal products (4.9 percent).

Meanwhile, eight sectors dipped year on year in June, including petroleum products (43 percent), publishing and printing (25.9 percent), basic metals (21.4 percent), tobacco products (19.9 percent), miscellaneous manufactures (17.8 percent), paper and paper products (11.6 percent), beverages (2.1 percent) and rubber and plastic products (0.2 percent).

Cid Terosa of the University of Asia and the Pacific said that the growth in factory output could be sustained although at a modest pace as the electronics and semiconductor industries have yet to fully recover.

“Strong manufacturing growth results in strong value-added activities and strong basis for industrialization,” Terosa said in a text message.

On a monthly basis, the volume of production index also picked up by 6.1 percent in June from the 4.2 percent dip in May.

The acceleration was attributed to the double-digit increases in the output of petroleum products (63.4 percent), electrical machinery (22.8 percent), tobacco products (15.8 percent) and paper and paper products (14.7 percent).

In terms of value of production, the total manufacturing industry grew 2.4 percent year on year in June from a decline of 2.9 percent in May.