Decline in manufacturing output slows in June

THE country’s manufacturing production, both in volume and value, continued to contract in June, but at a pace slower than that in May, according to the Philippine Statistics Authority (PSA).

Results of the statistics agency’s latest Monthly Intergrated Survey of Selected Industries on Wednesday showed that the Philippines’ volume of production fell by 19.3 percent in the month, compared with 28.5 percent in May. This decline, however, was wider than the -9.0 percent in June last year.

Industry groups that posted declines were electrical machinery (-21.9 percent); machinery except electrical (-41.3 percent); food manufacturing (-15.6 percent); transport equipment (-59.6 percent); nonmetallic mineral products (-44.4 percent); footwear and wearing apparel (-40.9 percent); tobacco products (-58.7 percent); beverages (-20.9 percent); rubber and plastic products (-27.7 percent); printing (-63.3 percent); miscellaneous manufactures (-33.2 percent); basic metals (-12.1 percent); textiles (-28.4 percent); fabricated metal products (-18.7 percent); furniture and fixtures (-34.2 percent); paper and paper products (-9.4 percent); and leather products (-40.9 percent).

The country’s value of production also decreased by 22.5 percent in June, slower than May’s 31.2 percent but faster than the -7.7 percent a year earlier.

Industry groups that contributed to this drop were electrical machinery (-26.4 percent); machinery except electrical (-43.4 percent); transport equipment (-62.7 percent); food manufacturing (-15 percent); nonmetallic mineral products (-44.9 percent); footwear and wearing apparel (-43.1 percent); tobacco products (-56.8 percent); beverages (-17.9 percent); rubber and plastics products (-29.5 percent); basic metals (-16.6 percent) printing (-62.6 percent); miscellaneous manufactures (-33.9 percent); textiles (-28.2 percent); paper and paper products (-20.7 percent); chemical products (-5 percent); fabricated metal products (-18.3 percent); furniture and fixtures (-21.2 percent); and leather products (-39.5 percent)

Commenting on the data, Acting Socieconomic Planning Secretary Karl Kendrick Chua said in a statement that the slow decline in June “reflected the gradual easing of quarantine restrictions.”

Despite this, he cautioned that the country’s manufacturing performance was still expected to be adversely affected by the coronavirus disease 2019 (Covid-19) pandemic in the near term, and described the government’s decision to put the National Capital Region and four neighboring provinces back under modifited enhanced community quarantine (MECQ) was “difficult, but important.”

“Although this [decision] is expected to weigh on the economy in the short term, as [the] resumption of business operations is limited, this will give our health system some respite amid the

recent rise in Covid-19 cases,” Chua said.

“It will also help improve productivity in the near term, as more lives are saved and consumer confidence restored,” he added.

The acting chief of the National Economic and Development Authority also said that with the escalating coronavirus infection toll in the country, the strict enforcement of quarantine measures by the public and private sectors needed to go hand in hand with efforts to gradually reopen the economy to ensure that jobs and income are protected.

The government also aims to help improve the resilience of businesses under the new normal by providing technical assistance on business continuity planning and capacity building on new competencies, including digital skills, digitalizing operations and entrepreneurial mentoring.