Manufacturing improves in June

The return to MECQ in these areas is a difficult but important decision. Although this is expected to weigh down on the economy in the short term as resumption of business operations is limited, this will give our health system some respite amid the recent rise in COVID19 cases. It will also help improve productivity in the nearterm as more lives are saved and consumer confidence restore. KARL KENDRICK T. CHUA

Acting Socioeconomic Planning Secretary

MANILA – The Philippine manufacturing sector exhibited slight improvements in its performance in June 2020, suggesting signs of recovery, the National Economic and Development Authority said.

As economic activities remain limited, the manufacturing sector contracted in both volume and value of production terms but at a slower rate than the previous month. In its Monthly Integrated Survey of Selected Industries (MISSI), the Philippine Statistics Authority reported today that the yearon-year Volume of Production Index (VoPI) declined by 19.3 percent while the Value of Production Index (VaPI) fell by 22.5 percent.

Nonetheless, both of these indices performed better than the revised VoPI and VaPI of -28.5 percent and -31.2 percent recorded in May 2020.

Expansions in petroleum products, wood and wood products, and chemical products tempered the decline of total manufacturing production.

Moreover, the three-month moving average growth rate of VoPI (-28.9%) and VaP (-31.6%), is significantly lower compared to the previous month’s average of -24.9 percent and -28.1 percent, respectively.

“The declining trend has slowed down in June 2020, which reflected the gradual easing of quarantine restrictions,” said Acting Socioeconomic Planning Secretary Karl Kendrick T. Chua.

The rate of decline for most of the construction-related manufactures was slower compared to the previous month. The easing of various community quarantine measures in many parts of the country permitted the continuation of several public and private construction projects (e.g. quarantine and isolation facilities, rehabilitation works, sewerage projects, water service facilities and digital infrastructure, among others). Construction activities were also allowed to resume subject to minimum public health standards and social distancing measures in the workplace.

However, the country’s manufacturing performance is still expected to be adversely affected by the ongoing global pandemic in the near term, the Cabinet official said.

Starting August 4, 2020, Metro Manila, Laguna, Cavite, Rizal, and Bulacan returned to a Modified Enhanced Community Quarantine (MECQ) for fifteen days.

“The return to MECQ in these areas is a difficult but important decision. Although this is expected to weigh down on the economy in the short term as resumption of business operations is limited, this will give our health system some respite amid the recent rise in Covid-19 cases. It will also help improve productivity in the near-term as more lives are saved and consumer confidence restored,” Chua said. /