Manufacturing slows down in January
March 10, 2017
The Philippine Statistics Authority’s Monthly Integrated Survey of Selected Industries (MISSI) reported Friday Volume of Production Index (VoPI) for manufacturing grew by 9.3 percent in January 2017, slower than the 35.8 percent growth recorded in the same month last year.
But Socioeconomic Planning Secretary Ernesto Pernia said outlook for the first quarter “
remains optimistic as business expansion, higher energy sales, and implementation of construction projects are anticipated.”
Manufacturing Value of Production Index (VaPI) for January also increased at a slower rate of 11.6 percent, compared with last year’s 25.9 percent.
Production volume in food manufacturing grew by 28.6 percent, higher than the 17.6 percent growth recorded in the same month last year. This was due to increased demand for food, beverages, and processed meat.
Production and net sales of transport equipment also increased during the period, seeing high domestic demand for motor vehicles.
For intermediate goods, production volume and value of petroleum products also increased by 45.3 percent and 87.2 percent, respectively. This is due to the temporary decrease in supply resulting from shutdowns of several oil refineries in the Middle East and in Asia.
“Firms remain cautious on some risks to growth such as rising oil prices, increased cost of raw materials due to peso depreciation, and higher interest rates,” Pernia said.
The first month of the year also saw growth in construction-related manufactures due to higher production volume of basic metals, fabricated metals, and non-metallic mineral products.
Production volume of export-oriented products like footwear and apparel, and wood products sustained upward trends in January 2017.
“These signal that the global economy is improving. Increased trade in emerging markets like China and Russia have definitely contributed to production growth of Philippine exports,” said Pernia.
He added that the implementation of the Philippine Development Plan 2017-2022 will further support the growth of the manufacturing sector. DMS
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