Manufacturing eased in December but remained in the positive territory for the ninth straight month, the Philippine Statistics Authority (PSA) reported this morning.
Preliminary results of the PSA’s latest Monthly Integrated Survey of Selected Industries showed the volume of production index (VoPI) went up by 17.9% year on year in December, a turnaround from 14.8% contraction in December 2020.
However, this was slower than the revised 25.8% growth in November.
December’s growth was the ninth consecutive month that the VoPI remained in the positive territory or since April’s 152.1% growth.
This brought the average factory output growth last year to 50.3%, reversing the 40.5% decline in 2020.
The statistics agency said half of the 22 industry divisions contributed to the growth in December led by manufacture of wood, bamboo, cane, rattan articles, and related products (122.6%).
In comparison, IHS Markit’s Philippines Manufacturing Purchasing Managers’ Index (PMI) slightly increased to a nine-month high of 51.8 in December to 51.8 from 51.7 in November. A reading above 50 marks improvement for the manufacturing sector while anything below indicates deterioration.
The capacity utilization of these factories averaged 67.3% in December, slightly down from 67.8% in November. Of the 22 sectors, 20 averaged a capacity utilization rate of at least 50%. — Bernadette Therese M. Gadon
