Manufacturing Output Expanded In November

The Philippine Statistics Authority (PSA) said manufacturing output increased at a slightly faster rate in November, as 15 industry groups recorded growth.

Based on PSA’s Survey, manufacturing, measured by the Volume of Production Index (VoPI), registered a 5.9% annual increase in November, higher than the 5.3% growth in October.

However, the VoPI in November was slower compared to the 28.6% growth in November 2021.

PSA said 15 out of 22 industry divisions registered positive annual growth rates in November, with the manufacturing of machinery and equipment leading. 

Meanwhile, industry divisions with a slower growth rate in November include basic metals, electrical equipment, printing and reproduction of recorded media, furniture, tobacco products, food products, and wearing apparel.

Rizal Commercial Banking Corp. chief economist Michael Ricafort said the manufacturing data could improve in December due to an increase in sales or business transactions, and production during the holiday season.

“Some manufacturers seasonally increased production activities in preparation for the seasonal increase in sales or demand in the fourth quarter,” Ricafort said.

Furthermore, PSA said the average capacity utilization rate for the manufacturing sector reached its highest record of 72.6% in November since January 2020.

“Almost all the industry divisions reported capacity utilization rates of more than 60%, except for manufacture of paper and paper products (56.8%),” the PSA said.

Industry divisions with the highest capacity utilization rate in November include computer, electronic, and optical products (80.6%), machinery and equipment except electrical (80%), and manufacture of furniture (79%).

The PSA added that 18.7% of responding establishments operated at full capacity, at 90-100% in November.

Other establishments operated at 70-89% capacity, and 36.7% operated below the 70% capacity.

Source: Philstar