Philippine Factory Output Accelerates in June Driven by Petroleum and Food Production

MANILA, Philippines — Philippine manufacturing output registered a faster growth rate in June from the previous month, driven by higher production of petroleum products and food items, according to the Philippine Statistics Authority (PSA). Results of the PSA’s Monthly Integrated Survey of Selected Industries showed that the Volume of Production Index (VoPI) recorded a faster year-on-year increase of 10.1 percent in June compared to the previous month’s 9.1 percent. The VoPI growth in June is also higher than the 2.3-percent increment in the same month last year. The faster growth in VoPI was driven by the manufacture of the following: coke and refined petroleum products, food and transport equipment. In particular, the manufacture of coke and refined petroleum products registered a faster annual increase of 84.5 percent in June from the previous month’s 73.3 percent. Food production also saw a faster year-on-year increment of 3.9 percent in June from 0.02 percent in the previous month. Likewise transport equipment production posted annual growth of 4.9 percent in June from a 0.5-percent dip in the previous month. Of the remaining 19 industry divisions, 12 posted annual increases in June. These are: computer, electronic and optical products; basic metals; furniture; rubber and plastic products; other non-metallic mineral products; basic pharmaceutical and pharmaceutical preparations; tobacco products; leather and related products, including footwear; electrical equipment; printing and reproduction of recorded media; textiles and wearing apparel. Meanwhile, seven industry divisions registered annual declines in their VoPI in June such as paper and paper products; and other manufacturing and repair and installation of machinery and equipment; beverages; wood, bamboo, cane, rattan articles and related products; fabricated metal products; machinery and equipment; and chemicals and chemical products. Based on responding establishments, the average capacity utilization rate for manufacturing in June stood at 78.9 percent, unchanged from the previous month. “All industry divisions reported capacity utilization rates of more than 65 percent during the month,” the PSA said. Industry divisions with the highest capacity utilization rate were tobacco products (82.8 percent), coke and refined petroleum products (82.7 percent) and other manufacturing and repair and installation of machinery and equipment (82.5 percent). Around 35 percent of survey respondents operated at full capacity (90 to 100 percent). Meanwhile, 40 percent operated at 70 to 89 percent capacity and around 25 were running below 70 percent capacity.