Factory output up by 1.9% in May

The country’s manufacturing output picked up in May from the previous month, with 14 industry groups posting growth, the Philippine Statistics Authority (PSA) said.

Factory output as measured by the volume of production index (VoPI) grew at an annual rate of 1.9 percent in May, up from 1.2 percent in April.

The May result, however, was significantly lower than the 267 percent expansion in the same month last year.

According to the PSA, 14 industry divisions contributed to the positive growth of VoPI in May this year with machinery and equipment posting the fastest growth at 50.7 percent.

Other industry groups that saw double-digit increases in May were chemical and chemical products (35.9 percent); fabricated metal products (22.8 percent): wood, bamboo, cane, rattan articles and related products (15.6 percent); computer, electronic and optical products (15 percent); and paper and paper products (11.6 percent).

Also posting gains are food products (8.9 percent); rubber and plastic products (9.8 percent); beverages (3.5 percent); repair and installation of machinery and equipment (9.4 percent); wearing apparel (9.6 percent); furniture (6.3 percent); tobacco products (2.4 percent); and leather and related products including footwear (3.3 percent).

Meanwhile, basic metals; coke and refined petroleum products; transport equipment; other nonmetallic mineral products; electrical equipment; printing and reproduction of recorded media; textiles; basic pharmaceutical products and pharmaceutical preparations suffered a decline.

The Value of Production Index (VaPI) grew at a faster pace of 8.9 percent in May from 7.6 percent in April.

The annual growth in VaPI in May, however, was slower than the 256 percent recorded in the same month last year.

PSA said 15 industry groups posted positive growth rates in May with machinery and equipment seeing the highest increase at 60.8 percent.

Meanwhile, seven industry divisions recorded decrements in their production with electrical equipment registering the biggest annual decline of -16.4 percent.

The average capacity utilization rate for manufacturing rose to 70.7 percent in May from 69.4 percent in April.

Out of the 22 industry divisions, 20 registered an average capacity utilization rate of at least 60 percent led by furniture (81.4 percent), wearing apparel (79.2 percent), and other non-metallic mineral products (78.6 percent).

Of the total responding establishments, 24.3 percent operated at full capacity or 90 to 100 percent.