PH factory output falls anew in September
Credit to Author: Anna Leah E. Gonzales| Date: Tue, 05 Nov 2019 16:31:24 +0000
THE country’s manufacturing output, both in volume and value, dropped for the 10th straight month in September, but at a pace slower that August’s, the Philippine Statistics Authority (PSA) reported on Tuesday.
Results of the PSA’s Monthly Intergrated Survey of Selected Industries showed that the volume of production index shrank by 3 percent in September from the 1.3-percent expansion a year ago. The latest figure, however, was an improvement from August’s 9.7-percent contraction.
The statistics agency attributed the decrease to the annual decline in electrical machinery (-10.4 percent), petroleum products (-17.3 percent), transport equipment (-8.3 percent), miscellaneous manufactures (-13.5 percent), furniture and fixtures (-30.1 percent), textiles (-3.5 percent), non-metallic mineral products (-1.8 percent), and leather products (-22.3 percent).
The value of production index, meanwhile, contracted by 2.3 percent, slower than the -8.3 percent decline in August, but reversing the 3.2-percent growth in the same month last year.
Decreases in the indices of petroleum products (-25.2 percent), electrical machinery (-14.2 percent), transport equipment (-9.2 percent), food manufacturing (-2.2 percent), miscellaneous manufactures (-11.9 percent), footwear and wearing apparel (-3.4 percent), textiles (-5.6 percent), chemical products (-1.2 percent), and leather products (-28 percent) were cited for the drop.
In a statement, the National Economic and Development Authority (NEDA) said the forthcoming holiday season and strong macroeconomic conditions were expected to help the sector in improving its performance in the fourth quarter.
“Despite the slowdown in the overall performance of the manufacturing sector for September 2019, we have observed improvements in various subsectors, which can be attributed to the upcoming holiday season, alongside lower inflation, stable exchange rate and lower interest rate,” NEDA Officer-in-Charge and Undersecretary for Regional Development Adoracion M. Navarro said.
To boost the sector in the near term, Navarro said the government would need to push for the implementation of high-impact projects under the “Build, Build, Build” infrastructure program.
According to her, this would sustain the demand for construction-related manufactures as more infrastructure flagship projects reach the building phase, and contribute to generating more employment and higher disposable income, resulting in an increased demand for consumer goods.
“We need to sustain infrastructure spending to achieve the national government’s target disbursement performance for the year. An extension in the validity of the 2019 budget, and the timely passage of the proposed 2020 national budget should be considered to avoid delays in the implementation of construction-related projects and activities,” Navarro said.