Credit to Author: Mayvelin U. Caraballo, TMT| Date: Fri, 04 Dec 2020 16:35:22 +0000
The country’s manufacturing output, both in volume and value, continued its deceleration in October, the Philippine Statistics Authority (PSA) reported on Friday.
Results of the statistics agency’s latest Monthly Integrated Survey of Selected Industries (Missi) showed that the country’s volume of production index (VoPI) declined by 11.3 percent in the 10th month, faster than the 8.6-percent decrease in September and the 5-percent drop year-on-year.
The PSA attributed the downtrend in the VoPI to reductions in the indices of 15 industry groups, led by petroleum products with -99.1 percent, printing with -53.4 percent and tobacco products with -48.7 percent.
The value of production index (VaPI), meanwhile, fell by 14.2 percent, quicker than the 12.4-percent slide a month ago and the 5.8-percent decline in October 2019.
Dragging the VaPi are decreases in the indices of 15 industry groups, led by petroleum products with -99.2 percent, printing with -52.8 percent, and footwear and wearing apparel with -49.2 percent.
Based on the responding establishments, the PSA said the average capacity utilization rate for the sector in October was at 67.2 percent from 69.2 percent the previous month.
Seven of the 20 industry groups had at least 80 percent average capacity utilization rate.
These were led by machinery except electrical (91.3 percent), electrical machinery (87.4 percent) and nonmetallic mineral products (86 percent).
Missi monitors the production, net sales, inventories and capacity utilization of selected manufacturing establishments to provide flash indicators on the industry’s performance.
The National Economic and Development Authority (NEDA) has said it still sees the country’s manufacturing performance to remain subdued in the near term as businesses expect the coronavirus pandemic to have a lingering impact on production.
“Sustaining the gradual and calibrated opening of the economy largely depends on the level of community quarantine that would allow businesses to operate and permit workers to remain mobile,” Acting Socioeconomic Planning Secretary Karl Kendrick Chua said.
“To make this possible, safe and a sufficient availability of public transportation can be supported by service contract subsidies if needed,” he added.
To help encourage the resumption of business operations, the NEDA said the government would continue to enforce minimum health standards. These include wearing face masks and face shields, and observing strict physical distancing protocols.
According to the results of the latest IHS Markit survey on the manufacturing sector, the Philippines’ seasonally adjusted Purchasing Managers’ Index (PMI) rose to 49.9 last month from 48.5 in October — the highest since September’s 50.1.
The PMI takes into account new orders, output, employment, suppliers’ delivery time, and stocks. Readings above 50 signal an expansion; below that, a contraction.