Factory output growth slows in September

MANILA, Philippines - Factory output growth could have decelerated further in September, Moody’s Analytics said.

The research firm forecast manufacturing output could have expanded by seven percent in September, slower than August’s 7.5 percent.

 “The Philippine manufacturing sector has cooled in 2014 after surging across the second half of 2013. That said, August production surprised on the downside given that export demand remains firm, particularly from the U.S., and the domestic economy continues to expand,” Moody’s Analytics said in a research note.

“We expect a solid increase in September output. Production of electronics continues to fall as a share of total output,” it said.

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

Latest data from the Philippine Statistics Authority showed the Volume of Production Index slid to 7.5 percent in August from 9.6 percent in July.

The August growth rate was driven by increases in the production of printing items, leather products, beverages, machinery except electrical, fabricated metal products, transport equipment, basic metals, petroleum products, and furniture and fixtures.