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Philippines: Factory output rebounds in February
MANILA, Philippines — The country’s manufacturing output rebounded at a faster pace in February after the economy reopened from the Omicron surge at the beginning of the year.
Factory output, as measured by the Volume of Production Index (VoPI), went up by 84.3 percent in February, quicker than the 17.1 percent uptick in January, and is a significant turnaround from the 43.9 percent contraction in February 2021.
The Philippine Statistics Authority (PSA) attributed the upturn in VoPI in February to the growth of 19 industry divisions led by the manufacture of coke and petroleum products, which surged 748.9 percent.
This is a huge jump from the 44.9 percent growth the month before.
The factory output in February showed that the gradual shift to the “new normal” with the continued easing of restrictions is contributing to the improvement of manufacturing conditions in the country.
Nineteen out of the 22 industry groups covered by the index registered growth during the month.
Most industry groups posted double-digit increases, including furniture (90.3 percent), tobacco products (85.5 percent), chemical products (46 percent), machinery and equipment (41.8 percent), leather products (32.1 percent) and computer, electronic and optical products (25 percent).
Other gainers include food products, basic metals, transport equipment, textiles, wood, bamboo, cane, rattan articles and related products, non-metallic mineral products, beverages, fabricated metal products, printing and reproduction of recorded media, paper and paper products, and basic pharmaceutical products and preparations.
Contractions, meanwhile, were also recorded, led by electrical equipment at 28.8 percent. Other declines were in wearing apparel, and rubber and plastic products.
The growth of the Value of Production Index (VaPI) likewise jumped to 92.4 percent in February from 21.8 percent in January. It was coming off a 47 percent contraction in the same period in 2021.
Further, capacity utilization on the average slightly increased to 69 percent from 68.3 percent.
All of the 22 industry groups had at least 50 percent average capacity utilization rate, except for the manufacture of wood, bamboo, cane, rattan articles and related products.
This was led by the manufacture of furniture, other non-metallic mineral products, and electrical equipment.
Only 20 percent of responding establishments operated at full capacity during the month.
Source: https://www.philstar.com/business/2022/04/08/2172990/factory-output-rebounds-february