Factory output slows in November

MANILA, Philippines - Factory output slowed in November due to weaker performance of the electrical machinery and basic metals sectors, according to the National Statistics Office (NSO).

According to the NSO’s Monthly Integrated Survey of Selected Industries released yesterday, manufacturing output as measured by the Volume of Production Index (VOPI) grew at a slower 9.6 percent in November compared to the revised 19.2 percent growth posted in October.

“This was mainly due to the slowdown in production outputs of the electrical machinery and basic metals sectors,” the NSO said.

Electrical machinery expanded at a slower pace of 10.6 percent in November compared to the previous month’s 51.7 percent.

Growth in production of basic metals also eased to 12.1 percent in November from the 36.3 percent expansion in October.

It noted however that high production outputs were reported by other sectors led by footwear and wearing apparel which posted a three-digit increase of 144.2 percent.

Other major sectors which posted gains were: wood and wood products (42.4 percent), leather products (31.6 percent), transport equipment (22.6 percent), machinery except electrical (14.7 percent), paper and paper products (10.9 percent).

The NSO said the Value of Production Index (VAPI) also picked up at a slower rate of 6.3 percent in November from October’s revised 16.1 percent expansion.

“This may be attributed to the slowdown in production growth notably for the basic metals sector,” it said.

The basic metals sector grew by 2.2 percent in November from the prior month’s 29.4 percent.

The Value of Net Sales Index, meanwhile, continued to grow, reflecting an annual increment of 9.2 percent in November from 8.7 percent in the previous month.

Contributing to the higher sales value were footwear and wearing apparel (150.9 percent), non-metallic mineral products (51.2 percent), textiles (38.5 percent), electrical machinery (34.5 percent), transport equipment (19.2 percent), miscellaneous manufactures (18.2 percent), and wood and wood products (11.3 percent).

The Volume of Net Sales Index also sustained its positive performance in November as it expanded by 12.6 percent from October’s revised growth of 11.6 percent.

Footwear and wearing apparel was a major contributor to the continued growth of the Volume of Net Sales as it posted a 157.5 percent growth.

Other drivers of the higher Volume of Net Sales were electrical machinery (52.5 percent), textiles (37.1 percent), wood and wood products (25.3 percent), miscellaneous manufactures (23.1 percent), machinery except electrical (18.6 percent), and transport equipment (15.8 percent).

The average capacity utilization for total manufacturing in November was at 83.3 percent.

Sectors which had capacity utilization rates of at least 80 percent are petroleum products, basic metals, food manufacturing, non-metallic mineral products, machinery except electrical, electrical machinery, rubber and plastic products, chemical products, paper and paper products, miscellaneous manufactures and wood and wood products.

The NSO said of the total establishments surveyed in November, 19.4 percent operated at full capacity or between 90 to 100 percent.