Factories churn out robust growth in August

MANILA, Philippines — The country’s manufacturing output continued its massive rebound streak in August, registering three-digit gains for five consecutive months, largely due to low base effects despite the reimposition of mobility curbs during the month.

Factory output, as measured by the Volume of Production Index (VoPI), surged by 534.6 percent in August, just slightly below the 539.7 percent in July but way better than the 82.2 percent contraction in August 2020.

The Philippine Statistics Authority (PSA) attributed the upturn in VoPI to the growth of 15 industry divisions led by the manufacture of coke and refined petroleum products, which swelled 3,800 percent.

Aided by low base from a year ago when industries grappled with reduced operating capacities, the consistent surge in manufacturing persisted even as the government reimposed the enhanced community quarantine in Metro Manila and nearby economic hubs.

Fifteen out of the 22 industry groups covered by the index registered growth during the month, led by the manufacture of coke and refined petroleum products at 3,800.9 percent.

The manufacture of fabricated metal products except machinery and equipment also posted triple-digit gains at 194 percent.

Most industry groups posted double-digit increases including wood, bamboo, cane, rattan articles and related products (94 percent); computer, electronic and optical products (52 percent); furniture (51 percent); electrical equipment (38 percent); non-metallic mineral products (29 percent); machinery and equipment (20 percent); paper and paper products (13 percent) and food products (11 percent).

Other gainers also include basic metals, transport equipment, rubber and plastic products, and leather products.

Contractions, meanwhile, were also recorded, led by tobacco products at 53.8 percent.

Other declines were in chemical products, beverages, printing and reproduction of recorded media, wearing apparel, basic pharmaceutical products and preparations, and textiles.

The Value of Production Index (VaPI) likewise saw a massive rebound, albeit slower, of 523.3 percent in August from 528.7 percent growth in July and 82 percent contraction in September 2020.

Further, capacity utilization on the average decreased to 66.1 percent from 66.8 percent the month before.

Nineteen of the 22 industry groups had at least 50 percent average capacity utilization rate, led by the manufacture of furniture, tobacco products, and other non-metallic mineral products.

Only a fifth or 22.2 percent of responding establishments operated at full capacity amid the lockdown.