PHL industry 'at its lowest point in recent years' – Balisacan

THE PHILIPPINES’ INDUSTRY sector — including manufacturing and construction — may have slumped to its lowest level in recent years, dragging third-quarter economic growth, Economy Secretary Arsenio M. Balisacan said.

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“I am not as optimistic (on growth) as I used to, given what the data that have been coming out in recent weeks, and particularly the performance of our industry,” he told reporters on the sidelines of an event on Monday.

“The industry is probably at its lowest point in recent years.”

He did not provide details on the gross domestic product (GDP) data, which will be released by the Philippine Statistics Authority on Nov. 7.

Mr. Balisacan said the corruption scandal, weather-related disruptions and mounting global uncertainties may have weighed on GDP growth in the third quarter.

He said there was a slowdown in government spending and fixed-capital formation, as well as other areas like industry and services.

A crackdown on anomalous flood control projects alongside a corruption probe may have affected government disbursements.

The Marcos administration only disbursed P1.46 trillion in the third quarter, data from the Bureau of the Treasury showed, P141.73 billion less than its P1.6-trillion program for the period. This is mainly due to lower spending by the Department of Public Works and Highways, which is at the center of a corruption scandal involving flood control projects.

Mr. Balisacan also noted that adverse weather conditions that led to the suspension of work and classes may have contributed to slower growth in the July-to-September period.