Factory output eases in July

MANILA, Philippines - Factory output eased in July this year compared to the same month a year ago, the Philippine Statistics Authority (PSA) said.

The PSA’s Monthly Integrated Survey of Selected Industries released Wednesday showed factory output as measured by Volume of Production Index (VoPI) accelerated slowly by 9.6 percent in July 2014 compared with 14.5 percent in July 2013.

Of the 20 major sectors, 12 contributed to the growth with significant increments posted by the following: printing (190.2 percent), fabricated metal products (50.3 percent), leather products (47.8 percent), beverages (39.3 percent), machinery except electrical (30.8 percent), basic metals (25.2 percent), wood and wood products (24.9 percent) and electrical machinery (13.8 percent).

The PSA said the Value of Production Index (VaPI) picked up 7.7 percent in July 2014 compared with 7.3 percent during the same month last year.

The growth could be attributed mainly to the three-digit increase in production value of printing (190.2 percent). 

Seven major sectors also contributed to the positive year-on-year growth of the VaPI such as leather products (51.7 percent), beverages (40.5 percent), fabricated metal products (38.4 percent), wood and wood products (27.9 percent), basic metals (20.4 percent), machinery except electrical (16.5 percent) and electrical machinery (14 percent).

Meanwhile, the expansion in the Value of Net Sales Index (VaNSI) eased to 4.3 percent in July 2014 compared with 19.3 percent in July 2013.

Driving the growth was the printing sector which posted a 112.2-percent increment.

Other sectors which supported the growth in VaNSI were textiles (57.6 percent), fabricated metal products (45.4 percent), wood and wood products (27.5 percent), leather products (17.8 percent) and electrical machinery (12.6 percent).

The Volume of Net Sales Index (VoNSI) likewise posted a slower annual increase of 6.1 percent in July 2014 compared with 27.3 percent in July 2013.

Significant increases were noted in seven major sectors namely: printing (112.2 printing), fabricated metal products (58 percent), textiles (55.4 percent), wood and wood products (24.6 percent), machinery except electrical (20 percent), leather products (14.7 percent) and electrical machinery (12.4 percent).

“Average capacity utilization in July 2014 for total manufacturing stood at 83.4 percent,” the PSA said.

Eleven of the 20 major industries operated at 80 percent and above capacity utilization rates such as petroleum products, basic metals, non-metallic mineral products, machinery except electrical, food manufacturing, electrical machinery, chemical products, paper and paper products, rubber and plastic products, printing, and wood and wood products.

The proportion of establishments that operated at full capacity (90 to 100 percent) was 23.3 percent in July 2014.

About 57.6 percent of the establishments operated at 70- to 89- percent capacity, while 19.1 percent of the establishments operated below 70 percent capacity.