Factory output posts faster growth in July

MANILA, Philippines — Philippine manufacturing output growth picked up pace in July amid faster increases in the production of computer and electronic products, transport equipment and food items, according to the Philippine Statistics Authority (PSA).

Preliminary results of the PSA’s Monthly Integrated Survey of Selected Industries released yesterday showed that the Volume of Production Index (VoPI) posted a 5.3-percent growth in July, faster than the 3.6-percent increase in June and the 3.6-percent uptick in July 2023.

This brought the average growth of VoPI from January to July to 2.1 percent.

The PSA said the faster VoPI growth was due mainly to the performance of the three industry divisions: computer and electronic products, transport equipment and food products.

It said the manufacture of computer, electronic and optical products registered a higher 12.5 growth in July from the 1.9 percent increment in June.

Production of transport
equipment, meanwhile, posted a 0.4-percent increase in July, a reversal of the 8.1-percent contraction in the previous month.

Food products had a 14 percent increment in July, higher than the 11.4 percent increase in June.

“Based on responding establishments, the average capacity utilization rate for the manufacturing sector in July 2024 was reported at 75.6 percent from the 75.3 percent capacity utilization rate in the previous month,” the PSA said.

It said all industry divisions had over 60 percent capacity utilization rates in July this year.

Those with the highest reported capacity utilization rate in July were manufacture of machinery and equipment except electrical (83.6 percent), other non-metallic mineral products (81.4 percent) and textiles (80.4 percent).

The PSA also said 30.2 percent of establishments operated at full capacity (90 percent to 100 percent) in July.

Meanwhile, 41.4 percent were operating at 70 to 89 percent capacity and 28.4 percent were running below 70 percent capacity.