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Philippines: Factory output rebounds at 3-digit pace in July
MANILA, Philippines — Manufacturing output continued its massive rebound streak in July, registering three-digit gains for the fourth consecutive month largely due to low base effects and supported by economic activities prior to renewed mobility curbs.
Factory output, as measured by the Volume of Production Index (VoPI), surged by 538 percent in July, coming from a 459 percent growth in June and 72.8 percent decline in July 2020.
The Philippine Statistics Authority (PSA) attributed the quicker upturn in VoPI to the growth of 14 industry divisions led by the manufacture of coke and refined petroleum products which swelled over 3,500 percent.
The reopening of the economy in July resulted in the consistent surge in manufacturing, aided by low base from a year ago when industries grappled with reduced operating capacities.
Unfortunately, the reimposition of strict community quarantines in August may likely reduce the gains in the last four months as the government struggles to avert the spread of the Delta variant.
Fourteen out of the 22 industry groups covered by the index registered growth during the month, led by the manufacture of coke and refined petroleum products at 3,525.6 percent.
The manufacture of fabricated metal products except machinery and equipment also posted triple-digit gains at 120 percent.
Most industry groups posted double-digit increases including wood, bamboo, cane, rattan articles and related products (57 percent), computer, electronic and optical products (51 percent), electrical equipment (36 percent), basic pharmaceutical products and preparations (23 percent), transport equipment (22 percent), machinery and equipment (16 percent), non-metallic mineral products (14 percent), and food products (10 percent).
Other huge gainers also include rubber and plastic products, paper and paper products, leather products, and textiles.
Contractions, meanwhile, were also recorded, led by tobacco products at 56 percent. Other declines were in chemical products, beverages, basic metals, printing and reproduction of recorded media, wearing apparel, and furniture.
The Value of Production Index (VaPI) likewise saw a massive rebound of 528 percent in July from 445 percent growth in June and 74 percent contraction in July 2020.
However, capacity utilization on the average slightly went down to 66.7 percent from 67.7 percent the prior month.
Nineteen of the 22 industry groups had at least 50 percent average capacity utilization rate, led by the manufacture of other non-metallic mineral products, tobacco products, and furniture.
Only 26.9 percent of responding establishments operated at full capacity.
Source: https://www.philstar.com/business/2021/09/10/2126030/factory-output-rebounds-3-digit-pace-july