Moody’s sees factory output slowing down in May

MANILA, Philippines - Factory output expansion could have slowed down in May although sustaining a double-digit growth as exports continue to grow, research firm Moody’s Analytics said.

 “Industrial production has recovered after slowing through the first quarter following the November typhoon,” Moody’s said.

 “Exports have been growing quickly over the past nine months. Net sales, however, remain weak,” the firm continued.

Moody’s has forecast manufacturing output growth to have slowed down to 10 percent in May from 12.9 percent in April.

Official May factory output data will be released on Thursday, July 10.

The country’s manufacturing sector saw double-digit growth through the second half of last year before slowing down in January.

Data from the Philippine Statistics Authority showed the value of production index accelerated to 12.9 percent in April from a contraction of 0.8 percent contraction in March.

This was largely driven by a 159.9-percent surge in petroleum products during the period. The PSA also noted the growth in April was also due to printing, machinery except electrical, tobacco products, fabricated metal products, and beverages.

Data also showed the volume of production index rose to 12.8 percent in April from a contraction of 1.1 percent in March, amid a strong performance of petroleum products.

It was also due in part to the growth recorded by the printing, machinery except electrical, tobacco products, fabricated metal products, beverages, and furniture and fixtures sectors.