MANILA, Philippines - The Philippine manufacturing sector’s output grew at a slower pace in 2014 compared to a year ago, according to the Philippine Statistics Authority (PSA).
The PSA’s Monthly Integrated Survey of Selected Industries released yesterday showed that the manufacturing sector posted an average growth rate of 7.5 percent in terms of Volume of Production Index (VoPI) last year, lower than the 13.9-percent growth posted in 2013.
For the month of December alone, VoPI also accelerated at a slower rate of 7.5 percent last year compared to the 22.8-percent expansion seen in the same month in 2013.
This, as eight sectors posted declines such as footwear and wearing apparel; tobacco products; rubber and plastic products; furniture and fixtures; paper and paper products; textiles; food manufacturing; and leather products.
In terms of Value of Production Index (VaPI), the country posted an average growth rate of 6.3 percent last year, higher than 2013’s 5.4 percent.
VaPI, however, reflected a slower growth rate of 4.2 percent in December 2014 compared with 17.8 percent in December 2013, as decreases were seen in production values of the following: petroleum products; footwear and wearing apparel; tobacco products; machinery except electrical; electrical machinery; rubber and plastic products; furniture and fixtures; paper and paper products; textiles; and leather products.
Meanwhile, the average capacity utilization rate in December 2014 for total manufacturing was recorded at 83.6 percent.
More than 50 percent or 11 of the 20 major industries operated at 80 percent and above capacity utilization rates such as petroleum products; basic metals; non-metallic mineral products; electrical machinery; chemical products; food manufacturing; machinery except electrical; paper and paper products; rubber and plastic products; printing; and wood and wood products.
The PSA noted that the proportion of establishments that operated at full capacity (90 percent to 100 percent) was 24.5 percent in December 2014.
It added that about 57.3 percent of the establishments operated at 70 percent to 89 percent capacity, while 18.2 percent of the establishments operated below 70 percent capacity.
The Philippine government is actively promoting the manufacturing sector as it is seen to create jobs and make economic growth more inclusive.
Socioeconomic planning chief Arsenio Balisacan said in a statement the manufacturing sector has potential to grow through the effective implementation of the Manufacturing Resurgence Program (MRP) by various national agencies.
“The MRP is expected to rebuild the domestic production base and improve competitiveness through innovation in order to compete in the export market. In addition, the government needs to be mindful of infrastructure bottlenecks, and stability of energy supply likewise needs be ensured in order to foster a stable business environment,” he said.