Factory output logs 8 consecutive month of decline

By CHINO S. LEYCO By CHINO S.

The country’s manufacturing output dropped for the eighth consecutive month this year, but the government is confident that the faster implementation of infrastructure projects would boost demand for constructionrelated materials.

In the PSA’s August monthly integrated survey of selected industries, the volume of production index (VoPI) was down by 9.3 percent, while the value of production index (VaPI) contracted by 7.9 percent.

Theweakperformanceofheavily weighted petroleum products, furniture and fixtures, transport equipment, electrical machinery, beverages, and miscellaneous manufactures accounted for the contraction in manufacturing.

For this reason, the National Economic and Development Authority (NEDA) said the implementation of infrastructure projects should be hastened to help sustain demand for construction-related manufactures.

Production indices in construction-related manufactures grew, with notable increases in the volume (8.9 percent) and value (12.7 percent) of non-metallic mineral products and basic metals (16.5 percent for VoPI and 6.8 percent for VaPI).

The sub-sector growth was attributed to the construction of new cement plants and also in part to the expansion in infrastructure spending of the government.

Socioeconomic Planning Secretary Ernesto M. Pernia said that fast-tracking the implementation of infrastructure projects will help the manufacturing sector recover even with less optimistic business outlook as uncertainty in the global market remains.

“The completion of infrastructure projects will improve transport and logistics, crucial in supporting the manufacturing sector,” Pernia said.