April factory output continues to slow

MANILA, Philippines - Philippine factory output continued to slow down in April, with the Volume of Production Index (VoPI) inching up by only 2.6 percent, substantially slower than the revised 9.7 percent growth in March, the National Statistics Office (NSO) reported yesterday.

NSO data also showed that this was the slowest growth since October 2009, when factory output in the country recorded a contraction of five percent.

The slower growth, according to the latest Monthly Integrated Survey of Selected Industries (Missi) report by the NSO, “was accounted mainly by the decline in production output of the basic metals industry.”

On a month-on-month basis, the Value of Production Index (VaPI) reflected a decline of 4.3 percent in April compared with a 4.5 percent growth recorded a month ago. The NSO attributed this to the contraction in production in the following major sectors: leather products, transport equipment, miscellaneous manufactures, furniture and fixtures, chemical products and fabricated metal products.

In terms of value, the production index also grew slower to four percent from 8.5 percent in March.

“This maybe largely attributed in the diminished production values of basic metals and miscellaneous manufactures,” the NSO added.

Most plants also had an average capacity utilization rate of 82.8 percent.

 “Ten of the 20 major sectors registered capacity utilization rates of 80 percent and more, namely: basic metals, food manufacturing, petroleum products, non-metallic mineral products, electrical machinery, chemical products, miscellaneous manufactures, paper and paper products, rubber and plastic products and machinery except electrical,” the NSO said.

The proportion of establishments that operated at full capacity was 17.8 percent in April. About 59.8 percent of the establishments operated at 70 percent to 90 percent while 22.4 percent of the establishments operated below 70 percent capacity.