Manufacturing sector rebounds in June
The manufacturing sector rebounded last June, propelled by strong production of construction-related capital goods, the National Economic and Development Authority (NEDA) said Wednesday.
Factory output, as measured by the Volume of Production Index (VoPI), rose 8.5 percent in June, reversing a 1.7 decline in the same period last year. Production were higher in basic metals, transport equipment, machinery except electrical, rubber and plastic products, tobacco products, wood and wood products, beverages, and printing.
Production value, as measured by the Value of Production Index (VaPI), also made a turnaround, growing 4.7 percent in June and reversing a 7.9 percent contraction in June 2015. This was attributed to increases in the production value of the following products: basic metals, transport equipment, tobacco products, rubber and plastic products, beverages, wood and wood products, machinery except electrical, and printing.
Similarly, the Volume of Net Sales Index (VoNSI) marked a strong growth of 7.1 percent while the Value of Net Sales Index (VaNSI) grew 3.4 percent. Both indices reversed negative growth rates in the comparative period.
In June, factories operated at an average capacity rate of 83.5 percent. Fifty-five percent or 11 of the 20 major industries operated at capacity utilization rates of 80 percent and above.
Production facilities of basic metals operated at the highest capacity rate of 88.7 percent.
Socioeconomic Planning Secretary and NEDA director general Ernesto Pernia said the manufacturing sector’s performance during the period reflects sustained domestic demand.
“This signifies an improvement from the subdued growth in 2015 and reflects the sector’s strong production growth since the beginning of the year. The upswing in net sales performance was also a result of sustained domestic demand in the country,” he said.
NEDA said higher production of construction- related goods, particularly basic metals, transport equipment and machinery reflects continuous implementation of several infrastructure projects of both the private and public sectors.