Factory output contracts at slower pace in March

MANILA, Philippines — Philippine manufacturing activity declined at a slower pace in March from the previous month due to higher production of food, transport equipment and electronic products.

Preliminary results of the Monthly Integrated Survey of Selected Industries of the Philippine Statistics Authority (PSA) released yesterday showed the Volume of Production Index (VoPI) for manufacturing posted a slower decline of 0.2 percent in March this year from the previous month’s decrement of 1.5 percent and 5.1 percent contraction in March 2024.

In the first quarter, the VoPI growth was at 0.2 percent.

The PSA said food products, transport equipment, as well as computer, electronic and optical products, drove manufacturing output in March.

It said food products registered a faster increase of 18.8 percent in March from 13.5 percent in February.

Transport equipment saw a five-percent increase in March, a turnaround from the 1.3-percent contraction in the previous month.

Computer, electronic and optical products had a 2.2-percent increase in March from a 0.2-percent dip in February.

Also posting positive growth rates in production in March were machinery and equipment except electrical, electrical equipment, beverages, other non-metallic mineral products, tobacco products, rubber and plastic products, leather and related products including footwear, as well as other manufacturing and repair and installation of machinery and equipment.

Industry divisions that saw declines in March were furniture, apparel, coke and refined petroleum products, chemicals and chemical products and basic metals.

Average capacity utilization rate in March was at 76.2 percent, up from the previous month’s 75.9 percent.

“All industry divisions reported capacity utilization rates of more than 50 percent during the month,” the PSA said.

The top three industry divisions in terms of reported capacity utilization rate were machinery and equipment except electrical (85 percent), food products (80.5 percent) and other manufacturing and repair and installation of machinery and equipment (80.3 percent).

Of the total number of responding establishments, 28.5 percent operated at full capacity or 90 percent to 100 percent.

Meanwhile, 44.2 percent were running at 70 percent to 89 percent capacity and 27.3 percent operated below 70 percent capacity.