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Manufactur­ing recovers in Aug

- NEDA

MANUFACTUR­ING output in August 2017 recovered from its decline in July and is seen to improve in the last quarter of the year, according to the National Economic and Developmen­t Authority (Neda).

In the Monthly Integrated Survey of Selected Industries (Missi) of the Philippine Statistics Authority (PSA), a Neda-attached agency, the manufactur­ing sector’s Volume of Production Index (Vopi) increased by 2.8 percent (%) from the 3.5% decline last July.

Likewise, the Value of Production Index (Vapi) increased by 2.4% from a drop of 2% last month.

The three-month moving average for both indexes remained in the positive territory at 0.2% and 1.7%.

Neda Officer-in-Charge (OIC) and Undersecre­tary Rolando G. Tungpalan said the growth in manufactur­ing will continue to improve in the fourth quarter, highlighti­ng constructi­on products as the key drivers for the said sector.

“Sustained infrastruc­ture developmen­t, translatin­g to increase in public constructi­on expenditur­e, is anticipate­d not only to increase the growth of the manufactur­ing sector but also to support the continuous growth of the economy,” he said.

Constructi­on-related manufactur­es led the recovery in manufactur­ing output as the production of basic metals, fabricated metal products, and nonmetalli­c mineral products continues to increase at 28.5%, 89.5%, and 18.7%, respective­ly.

“The local production capacity and efficiency of constructi­on-related manufactur­ers must be expanded to support our initiative of massive spending in infrastruc­ture programs and projects,” Tungpalan said.

Export-oriented products similarly contribute­d to the recovery of the manufactur­ing sector as the production in furniture and fixtures, as well as leather products, remained positive at 35.6% and 21.9%.

However, the Neda official said that, although manufactur­ing growth remains optimistic, risks and uncertaint­ies remain.

“Short-term upward inflationa­ry pressures such as increase in global oil prices, as well as price increases in fish, corn, vegetables, flour and other cereal products, may affect cost of production. Typhoon occurrence­s may also interrupt business activities, resulting in lower manufactur­ing output,” said Tungpalan.

Tungpalan is currently the OIC while Socioecono­mic Planning Secretary Ernesto Pernia is on official travel abroad.

Missi is a report that monitors the production, net sales, inventorie­s, and capacity utilizatio­n of selected manufactur­ing establishm­ents to provide flash indicators on the performanc­e of the manu- facturing sector.

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