Factory output growth slows in June

MANILA, Philippines — The country’s manufacturing output further contracted in June due to slower growth in the production of metals, transport equipment and fuel products, according to the Philippine Statistics Authority (PSA).

Based on the PSA’s monthly integrated survey of selected industries, the volume of production index (VoPI) grew to 2.5 percent in June, slower than the previous month’s 3.2 percent.

The manufacturing output in June, however, was faster than the 2.1-percent growth in the same month last year.

The average growth rate of VoPI for manufacturing was estimated at 1.3 percent in the first .

The PSA blamed the lower VoPI on the slower increase in the output of three industry divisions.

In particular, the manufacture of basic metals slipped by 17.7 percent in June from the 2.8 percent decrease in the preceding month.

The production of transport metal was also said to have declined by 8.8 percent in June from the 1.2 percent drop in May.

The production of coke and refined petroleum products saw a 46 percent growth in June from the 52.7-percent expansion in the previous month.

Of the remaining 19 industry divisions, eight posted annual declines in June, while 11 others registered annual increases during the period.

The PSA said the average capacity utilization rate for manufacturing in June stood at 75.3 percent, lower than the previous month’s 75.6 percent but higher than the 73.3 percent reported in June 2023.

“All industry divisions reported capacity utilization rates of more than 60 percent during the month,” the PSA said.

The manufacture of non-metallic mineral products recorded the highest capacity utilization rate at 81.7 percent. This was closely followed by the manufacture of machinery and equipment except electrical (81.6 percent) and furniture (81 percent).

Of the total number of responding establishments, about 30.3 percent operated at full capacity in June.

Meanwhile, 38 percent operated at 70 to 89 percent capacity, while 32 percent were running below 70 percent capacity.