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November MISSI

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By Mark T. Amoguis, Researcher

Manufacturing output eased further in November, the government reported this morning.

Preliminary results of the Philippine Statistics Authority’s (PSA) latest Monthly Integrated Survey of Selected Industries, showed factory output — as measured by volume of production index — increased by 1.0% year on year in November, slower than October’s revised 3.6% but a reversal from last year’s 10.1% decline.

So far, this was the slowest reading for 2018.

The PSA attributed November’s increase to double-digit gains in textiles (45.8%), miscellaneous manufactures (25.6%), petroleum products (22.0%), tobacco products (21.1%), paper and paper products (15.0%), beverages (11.7%), and electrical machinery (11.0%).

Factory output volume averaged 10.1% in the 11 months to November, higher than the 0.8% recorded in last year’s comparative period.

In comparison, the Nikkei Philippines Manufacturing Purchasing Managers’ Index (PMI) improved that month to 54.2 from October’s 54 but lower than last year’s 54.8, signaling “notable improvement” in the manufacturing sector’s health.

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%.