Factory output expands at slower pace

MANILA, Philippines - Factory output expanded at a slower pace in February from the previous month as most sectors posted declines, the National Statistics Office (NSO) said.

Preliminary results of the statistics agency’s Monthly Integrated Survey of Selected Industries released yesterday showed factory output as measured by volume of production index (VOPI) grew by 8.7 percent in February compared to the revised 16.6 percent expansion posted in January.

Out of 20 sectors covered, 11 posted declines in February such as petroleum products, tobacco products, publishing and printing, transport equipment, textiles, miscellaneous manufactures, beverages, non-metallic mineral products, furniture and fixtures, electrical machinery, and wood and wood products.

While nine sectors posted gains, the increases seen in seven groups such as food manufacturing, chemical products, machinery except electrical, fabricated metal products, rubber and plastic products, footwear and wearing apparel as well as paper and paper products were still lower compared to the growth seen in January.

The NSO said the Value of Production Index (VAPI) meanwhile made a turnaround as it posted a 1.3 percent drop in February from the 5.8 percent growth in the previous month.

The decreases in production value were exhibited by 12 major sectors, with two-digit decreases noted in the following: tobacco products (-37.1 percent), publishing and printing (-34 percent), furniture and fixtures (-31 percent), petroleum products (-21.1 percent), transport equipment (-16.2 percent), textiles (-12.6 percent), electrical machinery (-11 percent) and rubber and plastic products (-10.4 percent).

The Value of Net Sales Index (VaNSI) decelerated at a slower rate of 0.6 percent in February, from a 1.9 percent growth in January.

“Significant reduction in production value was observed in the following major sectors: electrical machinery (-16.6 percent), paper and paper products (-13.1 percent), tobacco products (12.8 percent) and furniture and fixtures (12.6 percent).

The Volume of Net Sales Index (VoNSI) meanwhile registered a slower annual growth of 9.5 percent in February from the previous month’s 12.4 percent mainly due to the slowdown in annual sales volumes in footwear and wearing apparel, food manufacturing, transport equipment and textiles sectors.

The average capacity utilization for the month of February was at 82.8 percent.

“More than half or 55 percent of the 20 major sectors registered capacity utilization rates of 80 percent or more,” the NSO said.

Those which had capacity utilization rates of 80 percent and above were basic metals; machinery except electrical; petroleum products; food manufacturing; non-metallic mineral products; electrical machinery; wood and wood products; chemical products; rubber and plastic products; and paper and paper products.

The NSO also noted that 18.7 percent of establishments covered by the survey operated at full capacity or between 90 to 100 percent in February.