Mfg growth likely eases to 7% in April

MANILA, Philippines - Philippine industrial production likely grew a slower seven percent in April from 7.8 percent in March, Moody’s Analytics said in a report.

“Industrial production has been expanding rapidly in recent months thanks to strong domestic conditions outweighing external weakness,” Moody’s Analytics said.

In the Philippine Statistics Authority’s Monthly Integrated Survey of Selected Industries for March 2016, the Volume of Production Index grew 7.8 percent, a slowdown from the 11.2-percent growth posted in the previous month.

This is also slower than the 14.9-percent growth recorded in the same month last year.

On the other hand, the Value of Production Index  recorded a 1.9-percent growth in March, picking up from the 5.6-percent decline recorded in the previous month.

 “Consumption and investment will remain strong throughout 2016, which will sustain strong growth in manufacturing output,” Moody’s Analytics said.

Socioeconomic Planning Secretary Emmanuel Esguerra attributed the growth to the robust manufacturing production that was supported by strong household spending and sound macroeconomic fundamentals.

Esguerra, who is also director general of the National Economic and Development Authority said the growth was supported by the increased production in food manufactures, electrical and non-electrical machineries and chemical products, among others.

Esguerra said the positive performance of the manufacturing sector is expected to continue and drive higher growth in the first semester of the year.

“The buoyant domestic demand, stable inflation, low power rates, and continued decline in world crude oil prices will continue to support the growth of the sector, and at the same time, will help cushion the effect of slow global economic growth,” he added.

Esguerra said election-related spending also provide additional boost to the production output of paper and plastic products, among others.