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Philippines: Factory output makes slow start in January
MANILA, Philippines — The manufacturing sector started at a slow pace in January following the surge in new COVID cases due to the Omicron variant.
Factory output, as measured by the Volume of Production Index (VoPI), went up by 16.5 percent in January, slower than the 21.3 percent in December, but still better than the 14.5 percent contraction in January 2021.
The Philippine Statistics Authority attributed the upturn in VoPI in January to the growth of 16 industry divisions led by the manufacture of tobacco products, which increased by 88.4 percent, a turnaround from the 14.5 percent contraction the month before.
The manufacture of wood, bamboo, cane, rattan articles and related products also went up, but at a slower pace of 86.8 percent.
The factory output in January showed that the low base effects continued to dwindle after massive expansion for most of 2021.
But the shift toward the “new normal” this year is expected to help further improve manufacturing conditions in the country.
Sixteen out of the 22 industry groups covered by the index registered growth during the month.
Most industry groups posted double-digit increases, including coke and refined petroleum products (45 percent), basic pharmaceutical products and preparations (48 percent), basic metals (36 percent), machinery and equipment (20 percent) and textiles (21 percent).
Other gainers also include computer, electronic and optical products, food products, non-metallic mineral products, beverages, fabricated metal products, printing and reproduction of recorded media, paper and paper products, and furniture.
Contractions, meanwhile, were also recorded, led by wearing apparel at 24 percent.
Other declines were in transport equipment, rubber and plastic products, chemical products, and leather products.
The growth of the Value of Production Index (VaPI) likewise eased to 21.3 percent in January from 22.1 percent in December. In the same month a year ago, it contracted by 19.5 percent.
Further, capacity utilization on the average slightly increased to 67.9 percent from 67.4 percent.
Twenty of the 22 industry groups had at least 50 percent average capacity utilization rate, led by the manufacture of furniture, other non-metallic mineral products, and basic pharmaceutical products and preparations.
Only 17.8 percent of responding establishments operated at full capacity during the month.
Source: https://www.philstar.com/business/2022/03/10/2166117/factory-output-makes-slow-start-january