ASEAN KEY DESTINATIONS
PHL manufacturing sector recovers in August
The manufacturing sector recovered in August from a decline in July, the National Economic and Development Authority (NEDA) said on Tuesday.
Data from the Philippine Statistics Authority's (PSA) Monthly Integrated Survey of Selected Industries (MISSI) showed the manufacturing sector’s Volume of Production Index (VoPI) increased by 2.8 percent in August, a turnaround from the 3.5-percent decline in the prior month.
MISSI monitors the production, net sales, inventories, and capacity utilization of selected manufacturing establishments to provide flash indicators on the performance of the manufacturing sector.
The Value of Production Index (VaPI) also rose by 2.4 percent from a 2.0-percent in July.
“Sustained infrastructure development, translating to an increase in public construction expenditure, is anticipated not only to increase the growth of the manufacturing sector but also to support the continuous growth of the economy,” NEDA Undersecretary and officer-in-charge Rolando Tungpalan said.
Construction-related manufactures led the recovery in manufacturing output as the production of basic metals increased by 28.5 percent, fabricated metal products by 89.5 percent, and non-metallic mineral products by 18.7 percent.
“The local production capacity and efficiency of construction-related manufacturers must be expanded to support our initiative of massive spending in infrastructure programs and projects,” Tungpalan said.
Export-oriented products also contributed to the recovery. Furniture and fixtures output rose by 35.6 percent and leather products by 21.9 percent.
However, Tungpalan said noted that risks and uncertainties remain.
“Short-term upward inflationary pressures such as an increase in global oil prices, as well as price increases in fish, corn, vegetables, flour and other cereal products, may affect cost of production. Typhoon occurrences may also interrupt business activities, resulting in lower manufacturing output,” Tungpalan said.
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