Manufacturing scores 14.4% growth in 2016

Manufacturing output posted doubledigit growth in both December and fullyear 2016 due to increase in production of petroleum products, food manufactures, and transport equipment, the National Economic and Development Authority (NEDA) said yesterday.

Based on the Philippine Statistics Authority’s Monthly Integrated Survey of Selected Industries (MISSI) for December 2016, the Volume of Production Index (VoPI) for manufacturing increased to 23 percent from 5 percent in the same period in 2015.

Likewise, the Value of Production Index for manufacturing grew by 19.4 percent, from the 2.7 percent decline recorded in December 2015.

As a result, full-year VoPI for manufacturing grew 14.4 percent for year 2016 from 2.5 percent growth recorded in 2015. “The manufacturing sector is performing very well. Increases in the purchases of capital and durable goods contributed to the increase and further indicates that there is business and consumer confidence in the domestic economy,” Socioeconomic Planning Secretary Ernesto M. Pernia said.

Transport equipment recorded growth in production volume and value of 34.3 percent and 35.6 percent, respectively in December 2016. Meanwhile, construction-related manufactures sustained the upward trend, primarily in response to the increase in demand for both residential (19.2 percent) and non-residential buildings (27.3 percent) during the third quarter of 2016.

For December 2016, food manufacturing grew 35.1 percent, the highest production volume growth recorded since 2013.

Value of production of the food subsector also increased by 37.7 percent, driven mainly by domestic demand during the holiday season and higher production value of vegetable oil and animal fats.

Moreover, for intermediate goods, the petroleum subsector has been sustaining its growth, posting a production volume growth of 63.2 percent for December 2016. This is a complete reversal from the 34.2 percent decline in 2015. (CSL)