Factory output up anew

Philippine Tribune
Philippine Tribune

MANUFACTURING output improved in both value and volume terms in August, the Philippine Statistics Authority (PSA) reported on Friday.

The Value of Production Index (VaPI) expanded by 9.1 percent, markedly higher than the 4.9 percent a month earlier. It was, however, slower than the year-earlier 12.3 percent.

The Volume of Production Index (VoPI), meanwhile, grew at a faster pace of 8.5 percent from July’s 4.9 percent. Growth a year earlier was also lower at 4.6 percent.

The VaPI expansion, the PSA said in a statement, resulted from a smaller annual decline of 2.9 percent in the computer, electronic and optical products manufacturing index compared to the previous month’s 16.0-percent drop.

The category made up 37.4 percent of the annual increase for August.

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Other main contributors were the manufacture of food products (3.3 percent from 1.6 percent) and the manufacture of coke and refined petroleum products (39.3 percent from 26.1 percent).

Out of the remaining 19 industry divisions, six showed annual increases, while 13 experienced declines in August 2023, with furniture manufacturing seeing the steepest drop at 30.0 percent.

As for the VoPI, August’s growth “was mainly brought about by the annual increases in the same top three industry divisions that contributed to the higher annual rate of VaPI during the period,” the PSA said.

These were computer, electronic and optical products (5.2 percent from 17.0 percent), food products (0.7 percent from 3.4 percent), and coke and refined petroleum products (48.0 percent from 35.6 percent).

Average capacity utilization, meanwhile, recorded an uptick to 73.9 percent in August from 73.6 percent in the previous month.

“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 capacity utilization were the manufacture of machinery and equipment except electrical (80.3 percent), the manufacture of rubber and plastic products (79.5 percent), and the manufacture of transport equipment (79.3 percent).

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