Manufacturing sustains growth in August 2016
MANILA (Philippines News Agency) — Manufacturing sector output continued to grow in August 2016 due to sustained production of capital goods and growth in volume of export-oriented products, according to the National Economic and Development Authority (NEDA).
“Manufacturing output sustaining positive growth despite the weak global economy is driven by the increase in new orders and sales volume as well as expansions of new manufacturing firms,” said NEDA Officer-in-Charge (OIC) and Deputy Director-General Rosemarie G. Edillon.
In the Philippine Statistics Authority’s Monthly Integrated Survey of Selected Industries for August 2016, the Volume of Production Index (VoPI) grew by 13.5 percent. This is an improvement from the 2.2 percent growth in August 2015.
“We expect the firms to remain in the expansion mode in the coming months due to the increase in their operating capacity and purchasing activities,” the NEDA official added.
This VoPI growth also pushed the three-month moving average growth rate grew further at 11.8 percent, a sign of expansion and recovery of the sector from the relatively weak performance last year.
Meanwhile, the Value of Production Index (VaPI) also grew by 8.4 percent, a turnaround from the 5.8 percent decline in August 2015. The three-month moving average grew by 7.0 percent.
For consumer goods, food subsector recorded double-digit growth in August, posting 11.1 percent and 13.3 percent growth rate in volume and value of production, respectively. These are improvements from the -14.5 and -14.8 percent growth rates last year.
The beverages subsector also recorded 16.1 percent and 21.3 percent growth rate in volume and value of production. These are also improvements from -7.5 and 0.7 percent performances last year.
For intermediate goods, petroleum products subsector recorded 2.3-percent and -6.8-percents growth rate in volume and value production, also improvements from -6 and -28 in the same period last year.
“In order to sustain and further boost the performance of the manufacturing sector, the implementation of support programs and projects especially in low-income and low-productivity areas must be continued and expanded,” said Edillon.
Also, she added that increased investments in research and development activities must be prioritized. This is to enhance the productivity and competitiveness of local products and processes, especially from micro, small and medium enterprises.
“What is important is that industries are able to produce quality goods and services at affordable prices, thus enabling more Filipinos to attain their aspiration, which is reflected in AmBisyon Natin 2040,” said Edillon. (PNA)