The country’s industrial production posted its third consecutive month of decline in February, the Philippine Statistics Authority (PSA) reported this morning.
Preliminary results of the PSA’s Monthly Integrated Survey of Selected Industries (MISSI) showed that February factory output – as measured by the Volume of Production index – contracted by 8.5% in February.
The February result marked a third straight month of year on year decline after the contractions seen in January at 2.9% and December 2018 at 9.3%. It was also a reversal from the 15.2% growth posted on February 2018.
Year to date, the factory output decline averaged 5.7% versus the 13% growth in 2018’s comparable two months.
“The decrement in February 2019 of VoPI was mainly influenced by the decreases in eight major sectors led by food manufacturing (-19.5%) and non-metallic mineral products (-12.0%),” the PSA said.
In comparison, the Nikkei Philippines Manufacturing Purchasing Managers’ Index (PMI) was 51.9 in February, lower than January’s 52.3, but higher than February 2018’s 50.8.
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 being used in the production of goods- was estimated at 84.3%. Eleven of the 20 sectors registered capacity utilization rates of 80% and above. — Christine Joyce S. Castañeda