In­dus­trial rev­enue growth ac­cel­er­ates in 4th quar­ter

Business World - - THE ECONOMY - Danielle M. Caro Jil

IN­DUS­TRIAL rev­enue in the fourth quar­ter of 2016 grew at its fastest pace in two years, the Philip­pine Sta­tis­tics Author­ity (PSA) said in a re­port yes­ter­day.

In its lat­est Quar­terly Eco­nomic In­dices re­port, the PSA said the gross rev­enue in­dex, a mea­sure of sales gen­er­ated by com­pa­nies across all in­dus­tries, in­creased by 9.4% in the fi­nal three months of last year, up from 5.9% in the same pe­riod of 2015, and the strong­est growth since the 10.1% in the third quar­ter of 2014.

The PSA as­cribed the lat­est fig­ure to faster rev­enue growth in real es­tate, man­u­fac­tur­ing and trade.

Cid L. Terosa, eco­nom­ics pro­fes­sor at the Univer­sity of Asia and the Pa­cific ( UA& P), at­tributes the growth “to the strong and dy­namic busi­ness and eco­nomic con­di­tions of the coun­try, par­tic­u­larly dur­ing the fourth quar­ter.”

“The fourth quar­ter is a time of rapid busi­ness and eco­nomic devel­op­ment be­cause of spend­ing associated with the hol­i­day sea­son,” Mr. Terosa said, re­fer­ring to the tra­di­tional spike in con­sumer spend­ing in the runup to Christ­mas.

Real es­tate rev­enue grew the fastest at 13.4% from 12.7% the pre­vi­ous year, fol­lowed by man­u­fac­tur­ing, which in­creased 10.6% from 3.5% over the same pe­riod. Trade rev­enue came in third, grow­ing 9.2% from 6.7% in 2015.

“Real es­tate, man­u­fac­tur­ing, and trade are the three sec­tors with the fastest rate of growth in the econ­omy. This can be seen from nu­mer­ous con­struc­tion and real es­tate de­vel­op­ments around the coun­try,” said Mr. Terosa.

“The re­vival of man­u­fac­tur­ing in­dus­tries and the strong sup­port given by gov­ern­ment to them has en­abled man­u­fac­tur­ing to per­form strongly. Trade, both whole­sale and re­tail, is al­ways a strong per­former be­cause the econ­omy is driven by con­sump­tion spend­ing,” he added.

Other sec­tors where rev­enue ac­cel­er­ated were fi­nance ( from 8.5% to 8.9%), and pri­vate ser­vices (from 2.2% to 6.6%).

Trans­porta­tion and com­mu­ni­ca­tion bucked the trend, with rev­enue growth slow­ing from 9.9% to 8.8%.

Ruben Carlo O. Asun­cion, chief econ­o­mist at the Union Bank of the Philip­pines (UnionBank), blames the slow­down on the “im­pact of the pre­vail­ing in­dus­try trend in trans­porta­tion and com­mu­ni­ca­tion (par­tic­u­larly in com­mu­ni­ca­tion) where in­dus­try play­ers have re­ported de­clines in their rev­enues and the over­all changes hap­pen­ing in this spe­cific in­dus­try in terms of de­mand and us­age of ser­vices.” —

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