Mfg output grows at slower pace

MANILA, Philippines - Manufacturing output expanded at a slower pace in January compared to the previous month, the Philippine Statistics Authority (PSA) said.

The Monthly Integrated Survey of Selected Industries released by the agency yesterday showed manufacturing output as measured by Volume of Production Index (VoPI) grew 7.2 percent in January, much slower than the revised 25.2-percent growth posted in December.

The PSA noted that 15 major industries contributed to the single-digit performance of VoPI, led by furniture and fixtures (237.4 percent).

Industries which posted double-digit increment were:  tobacco products (68.9 percent), publishing and printing (52.1 percent), machinery except electrical (44.5 percent), textiles (31.5 percent), fabricated metal products (23.8 percent), leather products (21 percent), chemical products (15.8 percent), electrical machinery (13.1 percent) and non-metallic mineral products (11.2 percent).

The growth in the Value of Production Index (VaPI) also eased to 7.3 percent in January compared to the 20.2-percent expansion in December.

“This can be mainly attributed to the lower production values reported by chemical products with an increase of only 15.5 percent  in January 2014 from 218.5 percent in December 2013,” the PSA said.

Major industries that were able to pull up the VaPI by registering significant increases in production were the following: furniture and fixtures (115 percent), tobacco products (68.5 percent), publishing and printing (52.1 percent), machinery except electrical (47.5 percent), textiles (31 percent), leather products (22.2 percent), fabricated metal products (20.3 percent), electrical machinery (18.1 percent),non-metallic mineral products (14.8 percent), petroleum products (12 percent), and rubber and plastic products (10.1 percent).

The Value of Net Sales Index (VaNSI) also slowed to 17.6 percent in January from the revised 33.4 percent in the previous month.

“This was mainly due to the slowdown in net sales value of chemical products (111.7 percent),” the PSA said.

Double-digit increases meanwhile, were noted in nine major industries such as machinery except electrical (50.3 percent), furniture and fixtures (37 percent), leather products (32.9 percent), fabricated metal products (30.4 percent), publishing and printing (20.7 percent), rubber and plastic products (17 percent), petroleum products (16.5 percent), tobacco products (15.8 percent) and miscellaneous manufactures (12.7 percent).

The Volume of Net Sales Index (VoNSI) likewise eased to 17.6 percent in January from the revised 38.9 percent in the previous month.

This, as there was a slowdown in the annual growth in sales of furniture and fixtures (115 percent) and chemical products (112.1 percent).

The average capacity utilization for total manufacturing was recorded at 83.2 percent in January.

Of the 20 major industries, 11 operated at capacity utilization rates of 80 percent and above. These are petroleum products; basic metals; non-metallic mineral products; food manufacturing; machinery except electrical; electrical machinery; chemical products; rubber and plastic products; paper and paper products; wood and wood products; and publishing and printing.

The proportion of establishments that operated at full capacity or from 90 to 100 percent was 22.4 percent in January 2014.

About 57.6 percent of the establishments operated at 70 to 89 percent capacity, while 20 percent of the establishments operated below 70 percent capacity.