October 10, 2017
MANILA – Manufacturing output in August 2017 recovered from its decline in July and is seen to improve in the last quarter of the year, according to the National Economic and Development Authority.
In the Monthly Integrated Survey of Selected Industries (MISSI) of the Philippine Statistics Authority, a NEDA-attached agency, the manufacturing sector’s Volume of Production Index (VoPI) increased by 2.8 percent from the 3.5 percent decline last July.
Likewise, the Value of Production Index (VaPI) increased by 2.4 percent from a drop of 2.0 percent last month.
The three-month moving average for both indexes remained in the positive territory at 0.2 percent and 1.7 percent.
NEDA Officer-in-Charge (OIC) and Undersecretary Rolando G. Tungpalan said that the growth in manufacturing will continue to improve in the fourth quarter, highlighting construction products as the key drivers for the said sector.
“Sustained infrastructure development, translating to increase in public construction expenditure, is anticipated not only to increase the growth of the manufacturing sector but also to support the continuous growth of the economy,” he said.
Construction-related manufactures led the recovery in manufacturing output as the production of basic metals, fabricated metal products, and non-metallic mineral products continues to increase at 28.5 percent, 89.5 percent, and 18.7 percent, respectively.
“The local production capacity and efficiency of construction-related manufacturers must be expanded to support our initiative of massive spending in infrastructure programs and projects,” Tungpalan said.
Export-oriented products similarly contributed to the recovery of the manufacturing sector as the production in furniture and fixtures, as well as leather products, remained positive at 35.6 percent and 21.9 percent.
However, the NEDA official said that, although manufacturing growth remains optimistic, risks and uncertainties remain.
“Short-term upward inflationary pressures such as increase in global oil prices, as well as price increases in fish, corn, vegetables, flour and other cereal products, may affect cost of production. Typhoon occurrences may also interrupt business activities, resulting in lower manufacturing output,” said Tungpalan.
Tungpalan is currently the OIC while Socioeconomic Planning Secretary Ernesto Pernia is on official travel abroad.
MISSI is a report that monitors the production, net sales, inventories, and capacity utilization of selected manufacturing establishments to provide flash indicators on the performance of the manufacturing sector.