Factory output growth slows in February: Philippines

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Philippine factory output expanded at a slower pace in February, as the manufacture of food products lagged, the Philippine Statistics Authority (PSA) said.

Preliminary results of the Monthly Integrated Survey of Selected Industries released by the PSA yesterday showed manufacturing output, as measured by the Volume of Production Index (VoPI), grew by 7.2 percent in February, slower than the 11.2 percent expansion the previous month and the 69.8 percent surge in February last year.

PSA said 'the slower annual growth of VoPI in February 2023 was mainly due to the slower annual rate in the index of manufacture of food products at 6.4 percent from 14 percent in the previous month.'

It said food products contributed 29.7 percent to the downtrend of VoPI in February.

Other industry divisions with slower growth in February are: electrical equipment; transport equipment; beverages; basic pharmaceutical products and pharmaceutical preparations; and paper and paper products.

Those which saw negative growth rates in February after registering positive growth rates in January are tobacco products; leather and related products, including footwear; textiles; wood, bamboo, cane, rattan articles and related products; and other non-metallic mineral products.

The Value of Production Index (VaPI) for manufacturing also posted a slower growth rate of 11.1 percent in February from 16 percent in January and 77.2 percent in February last year.

Similar to the VoPI, the PSA attributed the slower increase in VaPI primarily to the manufacture of food products, which posted a 13 percent increment in February from 21.4 percent in January.

Aside from food products, the following also had slower increases in February compared to January: other non-metallic mineral products; transport equipment; electrical equipment; beverages; basic pharmaceutical products and pharmaceutical preparations; paper and paper products; and other manufacturing and repair and installation of machinery and equipment.

Those with negative growth rates in February are wearing apparel; tobacco products; leather and related products, including footwear; textiles; and wood, bamboo, cane, rattan articles and related products.

The average capacity utilization rate for the manufacturing sector in February was at 72.6 percent from 72.8 percent the previous month.

Almost all the industry divisions reported capacity utilization rates of more than 50 percent in February.

'The top three industry divisions in terms of reported capacity utilization rate were manufacture of machinery and equipment except electrical (81.6 percent), manufacture of transport equipment (78.9 percent), and manufacture of coke and refined petroleum products (77.8 percent),' the PSA said.

Of the total number of responding establishments, 22.1 percent operated at full capacity or at 90 to 100 percent.

Meanwhile, 35 percent operated at 70 to 89 percent capacity, while 42.9 percent operated below 70 percent capacity.