PHL manufacturing output expands in August

FACTORY OUTPUT expanded in August, driven by higher production of food products, machinery and equipment, and a slower annual decline in basic metals, the Philippine Statistics Authority (PSA) reported.

- Isa Jane D. Acabal

Preliminary results of the PSA’s latest Monthly Integrated Survey of Selected Industries showed factory output, as measured by the volume of production index (VoPI), rose by 1.4% year on year in August. This was slightly faster than the 1.3% growth in the same month last year, and a turnaround from the 1.8% drop in July.

The August reading was the fastest growth since the 1.6% expansion in June.

In the eight months to August, factory output growth averaged 0.5%, slower than the 2.5% average in the same period last year.

On a monthly basis, August’s output picked up by 0.1%, slower than 2.6% in July. Stripping out seasonality factors, it fell by 3.2%.

According to the PSA, the faster year-on-year growth rate of VoPI for manufacturing in August was primarily driven by food products, which jumped by 20.2% from 11.4% in July.

There was also an uptick in machinery and equipment except electrical (6.7% in August from 3.1% in July), and a slower annual decline in basic metals (-9.6% from -26.8%).

Nine other divisions recorded expansions, while 10 saw declines.