NEDA expects recovery in manufacturing

The country’s manufacturing output is expected to recover this year following three consecutive months of decline since September last year, the National Economic and Development Authority (NEDA) said yesterday.

In the Monthly Integrated Survey of Selected Industries (MISSI) of the Philippines Statistics Authority (PSA), the Volume of Production Index (VoPI) for manufacturing contracted by 8.1 percent in November.

The Value of Production Index (VaPI), likewise, decreased by 9.3 percent, leaving a threemonth moving average of VoPI and VaPI of 2.5 percent and 1.5 percent, respectively.

“Despite the recent performance of the manufacturing sector, we remain optimistic given strong domestic and external demand. There are also considerable public and private investments in the country,” Socioeconomic Planning Secretary Ernesto M. Pernia said.

Pernia explained that domestic demand, in particular, may be higher in 2018 due to the country’s infrastructure development — through the Build, Build, Build program — and a higher take-home pay of Filipinos thanks to the tax reform law.

The decrease in production volume can be partly attributed to the lower production of tobacco following the implementation of the first package of the Tax Reform for Acceleration and Inclusion (TRAIN), which imposes additional excise tax on tobacco products beginning this month.

Production volume and value of manufactured food also declined in November due to decreases in the production value of milk and dairy products, milled and refined sugar, bakery products, and processed fruits and vegetables.

Meanwhile, the production volume of transport equipment picked up in November after posting positive but slower growth rates in September and October, reflecting consumers’ anticipation of price increases with the implementation of TRAIN.