Factory output grows at faster pace in November  

MANILA, Philippines — Manufacturing output expanded at a slightly faster rate in November last year from a month earlier, as 15 industry groups posted growth, the Philippine Statistics Authority (PSA) said.

Based on the preliminary results of the PSA’s Monthly Integrated Survey, manufacturing, as measured by the Volume of Production Index (VoPI), registered a 5.9-percent annual increase in November, up from the 5.3-percent growth in October.

The November VoPI, however, expanded at a slower pace compared to the 28.6-percent growth in the same month in 2021.

The PSA said 15 of the 22 industry divisions registered positive annual growth rates in November compared to October, led by the manufacture of machinery and equipment except electrical, which posted a 68.5-percent uptick.

Also posting annual increases in November were computer, electronic and optical products; fabricated metal products, except machinery and equipment; transport equipment; chemical and chemical products; beverages; coke and refined petroleum products; other manufacturing and repair and installation of machinery and equipment; rubber and plastic products; paper and paper products; textiles; wood, bamboo, cane, rattan articles and related products; leather and related products including footwear; other non-metallic mineral products and basic pharmaceutical products and pharmaceutical preparations.

On the other hand, industry divisions that declined in November were  basic metals, electrical equipment, printing and reproduction of recorded media, furniture, tobacco products, food products and wearing apparel.

PSA data showed the Value of Production Index (VaPI), meanwhile, expanded at a slower pace of 12.7 percent in November from the 13-percent expansion in October last year, and  30 percent in November 2021.

Contributing to the annual uptick in VaPI in November were  17 industry divisions that posted growth: computer, electronic and optical products; fabricated metal products except machinery and equipment; transport equipment; coke and refined petroleum products; chemical and chemical products; food products; beverages; machinery and equipment except electrical; other manufacturing and repair and installation of machinery and equipment; rubber and plastic products; paper and paper products; other non-metallic mineral products; wood, bamboo, cane, rattan articles and related products; textiles; leather and related products including footwear; basic pharmaceutical products and pharmaceutical preparations and wearing apparel.

Those which registered declines are  basic metals electrical equipment, printing and reproduction of recorded media, furniture and tobacco products.

Rizal Commercial Banking Corp. chief economist Michael Ricafort said the manufacturing data could improve in December, citing the seasonal increase in sales or business transactions, as well as production during the holiday season.

“Some manufacturers seasonally increased production activities in preparation for the seasonal increase in sales or demand in the fourth quarter,” he said.

The PSA said the average capacity utilization rate for the manufacturing sector was at a slightly higher 72.5 percent in November from 72.4 percent in the previous month.

Ricafort said the average capacity utilization rate was  the highest since January 2020, when it posted 72.6 percent.

“Almost all the industry divisions reported capacity utilization rates of more than 60 percent, except for manufacture of paper and paper products (56.8 percent),” the PSA said.

Industry divisions with the highest capacity utilization rate in November were computer, electronic, and optical products (80.6 percent), machinery and equipment except electrical (80 percent), and manufacture of furniture (79 percent).

The PSA also said 18.7 percent of the responding establishments operated at full capacity or at 90 to 100 percent in November.

Meanwhile, 44.6 percent operated at 70 to 89 percent capacity, and 36.7 percent operated below 70 percent capacity.