Phl factory output up 7.5%

MANILA, Philippines - Factory output likely expanded by 7.5 percent in December due to a strong demand from the domestic market and a rise in export performance, Moody’s Analytics said.

“Industrial production in the Philippines grew strongly through the second half of 2014 and we expect this to continue in the December report,” Moody’s Analytics said in a research note.

“Robust domestic demand improving export demand are driving a solid upturn in manufacturing,” the research firm said.

Manufacturing output, as measured by the volume of production index, grew faster by 8.1 percent in November from 7.7 percent in October.

Official December factory output data will be released on Tuesday.

“Fourth quarter GDP figures have already been released, showing a 7.3-percent year-on-year expansion in manufacturing,” Moody’s Analytics said.

“We expect a similar return in the final industrial production print for the year,” Moody’s continued.

The November performance was driven by the increases in the production of printing products, fabricated metal products, beverages, paper and paper products, non-metallic mineral products, and basic metals, data from the Philippine Statistics Authority showed.

Meanwhile, the value of production index also went up by 7.5 percent in November from a year ago.

The PSA said this was due to higher returns from printing products, fabricated metal products, beverages, paper and paper products, non-metallic mineral products, and leather products.

The country’s manufacturing sector recorded double-digit growth in the second half of 2013, helping the domestic economy achieve a strong expansion of 7.2 percent.

Factory output, however, slowed in the first quarter of 2014, before recovering in the second quarter, and slowing again in the third quarter.