Local factory output expands in April despite headwinds

MANILA, Philippines — Local factory output managed to eke out growth in April despite roiling headwinds here and abroad.

Data released by the Philippine Statistics Authority on Thursday indicated that the volume of production index (VoPI), a measure of manufacturing output, expanded by 8.2% year-on-year in April. This was a turnaround from the 1.3% contraction recorded a year ago and was faster compared to the 3.4% tallied in the previous month. 

Still, this was the 23rd straight month of expansion.

As it is, the manufacturing sector saw its fortunes rise as the Philippine economy reopened for business early in the second quarter. Its climb proved slow since external headwinds, such as supply chain disruptions, hampered its ascent. 

Economic managers use manufacturing output as a gauge of economic welfare. This indicator measures the demand of consumers and businesses in the country, where consumption is king.

When demand proves firm, manufacturers tend to hire more workers to keep production churning. Manufacturing started slowly in January, despite the sheen of base effects felt in 2022 and the economy’s full reopening.

The PSA attributed the gains in April to double-digit expansion in three industry sectors. This was top-billed by the manufacture of transport equipment which pushed out 38% annual growth. 

Broken down, nine industries expanded in April. Printing and reproduction of recorded media posted the largest expansion with 50.5%. 

Thirteen industries shrank in the month, spearheaded by the manufacture of worn apparel. — Ramon Royandoyan