The Philippine manufacturing sector expanded for the 17th month running in August.
The Volume of Production Index (VolPI) rose 3.5% while the Value of Production Index (VaPI) increased 11%.
Growth in both VolPI and ValPI was led by manufacture of machinery and equipment in the industry divisions. Manufacture of electrical registered the fastest decline.
The manufacturing sector’s average capacity utilization rate in August edged up to 71.4% from 71.3% in July.
The Philippine manufacturing sector grew for the 17th straight month in August 2022, according to the Philippine Statistics Authority (PSA).
The volume of Production Index (VolPI) improved 3.5% in August , faster than July’s 2.4% growth but slower than the 533.7% in August last year, according to PSA’s latest Monthly Integrated Survey of Selected Industries (MISSI).
The Value of Production Index (ValPI) likewise increased 11% in August, faster than the 10.6% growth in July but slower the 531.3% expansion in August.
VolPI and ValPI started recording growth in April 2021 after 13 consecutive months of decline resulting from OVID-19 relate restrictions in the country that started in March 2020 and pulled down the sector’s production and sales indices.
The growth in VolPI was driven by output increases in 17 out 22 industry divisions, led by manufacture of machinery and equipment, which grew 78% year on year. On the country, five industry divisions posted production declines with manufacture of electrical equipment dropping the fastest at 49.3% y-o-y.
Contributing to the increase of ValPI were the year-on-year growths exhibited by 18 out of 22 industry divisions. Among these, manufacture of machinery and equipment posted the highest year-on-year growth rate 77.4%.
The remaining four industry divisions reported declines in production with manufacture of electrical equipment registering the fastest contraction of 48.2% y-oy.
Based on MISSI’s responding establishments, the average capacity utilization rate for the manufacturing sector in August 2022 edged up to 71.4% from 71.3% in July.
Twenty out of 22 industry divisions had an average capacity utilization rate more than 60%, led by manufacture of computer, electronic, and optical products, 81.7%, and manufacture of wearing apparel, 79.3%.
About one-fourth or 25.6% of the responding establishments operated at full capacity of 90-100% while 36.6% operated at 70-89% capacity and 37.8% operated below 70%.