Factory output continues to decline in January

FACTORY output posted its second consecutive month of decline in January, the Philippine Statistics Authority (PSA) reported this morning.
Preliminary results of the PSA’s latest Monthly Integrated Survey of Selected Industries, showed its volume of production index contracting by 4.1% year on year in January versus the December’s revised 11.9% decline and the 10.8% growth logged in January 2018.
The PSA reported twelve out of the 20 major industry groups that registered annual declines: “Major industries that significantly influenced the decrease were furniture and fixtures and basic metals, with two-digit decreases of 31.1% and 12.0%, respectively,” said the PSA.
In comparison, the Nikkei Philippines Manufacturing Purchasing Managers’ Index (PMI) was 52.3 that month, slightly lower than December 2018’s 53.2, but higher than January 2018’s 51.7.
A PMI reading above 50 signals improvement in business conditions from the preceding month, while a score below that point indicates deterioration.
Average capacity utilization — the extent by which industry resources are used in the production of goods — was estimated at 84.3%. Eleven of the 20 sectors registered capacity utilization rates of at least 80%. — Mark T. Amoguis