PSA: Manufacturing output at a 4-month high
THE country’s manufacturing output posted a fourmonth high in January 2024, according to latest data released by the Philippine Statistics Authority (PSA).
Based on the Production Index and Net Sales Index, PSA said the Volume of Production Index (VOPI) grew 1.9 percent, the highest growth since the 9.3 percent posted in September 2023.
The PSA data showed the VOPI posted a growth of 1.6 percent in December 2023 and 7.3 percent in January 2023.
“Of the remaining 19 industry divisions, eight registered yearon-year increases in January 2024. In contrast, 11 industry divisions posted annual declines during the period. The highest annual drop was observed in manufacture of textiles at 31.5 percent,” PSA said.
The data showed the VOPI growth was the 7.1-percent contraction in the manufacture of computer, electronic and optical products compared to its double-digit decline of 16.5 percent in December 2023.
The manufacture of computer, electronic and optical products also contributed with a growth of 28.9 percent in January 2024.
Also contributing to the performance was the slower annual decline in the manufacture of beverages at 0.3 percent during the period from a 14-percent annual decrease in the previous month.
The double-digit annual growth observed in the manufacture of fabricated metal products, except machinery and equipment at 11.5 percent in January 2024, contributed to the VOPI growth.
The data also showed the top three industry divisions in January 2024 were the manufacture of coke and refined petroleum products; fabricated metal products, except machinery and equipment; and electrical equipment.
Meanwhile, the average capacity utilization rate for the manufacturing section in January 2024 was reported at 74.5 percent from 74.4 percent in the previous month.
This was the highest since December 2019 when the average capacity utilization rate of the manufacturing sector reached 84.4 percent.
PSA said almost all industry divisions reported capacity utilization rates of more than 60 percent during the month, except the manufacture of basic pharmaceutical products and pharmaceutical preparations at 55 percent.
The top three industry divisions in terms of reported capacity utilization rate were manufacture of furniture (88.7 percent), manufacture of transport equipment (86 percent), and manufacture of rubber and plastic products (82.4 percent).
“The proportion of establishments that operated at full capacity [90 percent to 100 percent] was 26.7 percent of the total number of responding establishments. Meanwhile, 37.6 percent operated at 70 to 89 percent capacity, and 35.7 percent operated below 70 percent capacity,” PSA said.
The Production Index and Net Sales Index was previously known as the Monthly Integrated Survey of Selected Industries.
It continues to monitor the production, net sales, inventories, and capacity utilization of selected manufacturing establishments to provide flash indicators on the performance of the manufacturing sector.