NEDA: Manufacturing to stay strong

Manufacturing growth will likely be sustained throughout the third quarter, the National Economic and Development Authority (NEDA) said on Wednesday following the release of data showing volume and value improvements for July.

The Philippine Statistics Authority’s latest Monthly Integrated Survey of Selected Industries (MISSI) showed gains for both the Value of Production (VaPI) and Volume of Production (VoPI) indices to 12.2 percent and 11.8 percent, respectively, from 6.0 percent and 5.1 percent contractions a year earlier.

“We expect this strong performance of the manufacturing sector this year as we continue to see stable domestic demand, as well as robust investments due to heightened infrastructure projects and consumer spending,” Socioeconomic Planning Secretary Ernesto Pernia said in a statement.

The VaPI gains were attributed to double-digit production improvements in the petroleum products (66.5 percent), textiles (39.1 percent), beverages (38.3 percent), basic metals (29.9 percent), miscellaneous manufactures (24.7 percent), machinery except electrical (19.1 percent), paper and paper products (15.4 percent), and electrical machinery (10.3 percent) sectors.

VoPI, meanwhile, rose on the back of similar double-digit improvements for fabricated metal products (39.7 percent), petroleum products (38.3 percent), textiles (33.5 percent), beverages (21.8 percent), miscellaneous manufactures (19.9 percent), basic metals (19.1 percent) and machinery except electrical (12.1 percent).

Average capacity utilization during the month was 84.1 percent, the PSA said, adding that 55 percent or 11 out of 20 major industries operated at 80 percent and above.

The production gains across sectors, Pernia said, are “likely to be sustained. And the whole of government continues to push for measures improving efficiency and innovation in the production sector in order to sustain this robust performance in the second half of the year.”

FROM A REPORT BY ED VELASCO

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