Industrial production up 1.9% in May

MANILA, Philippines — The country’s manufacturing output picked up in May from the previous month, with 14 industry groups posting growth, the Philippine Statistics Authority (PSA) said.

Factory output, as measured by the volume of production index (VoPI), rose at an annual rate of 1.9% in May, from 1.2% in April.

May’s result, however, was significantly lower than the 267% expansion of the same month last year.

According to the PSA, 14 industrial divisions contributed to the positive growth of VoPI in May this year, with machinery and equipment showing the fastest growth at 50.7%.

Other industry groups that saw double-digit increases in May were Chemicals and Chemicals (35.9%); fabricated metal products (22.8%): articles of wood, bamboo, rattan, rattan and related products (15.6%); computer, electronic and optical products (15%); and paper and paper products (11.6%).

Food products (8.9%) also posted gains; rubber and plastic products (9.8%); beverages (3.5%); repair and installation of machinery and equipment (9.4%); wearing clothes (9.6 percent); furniture (6.3 percent); tobacco products (2.4%); and leather and related products, including footwear (3.3 percent).

Meanwhile, base metals; coke and refined petroleum products; transportation equipment; other non-metallic mineral products; electrical equipment; printing and reproduction of recorded media; textiles; basic pharmaceuticals and pharmaceutical preparations declined.

The Value of Production Index (VaPI) rose at a faster pace of 8.9% in May, compared to 7.6% in April.

VaPI’s annual growth in May, however, was slower than the 256% recorded in the same month last year.

PSA said 15 industry groups posted positive growth rates in May, with machinery and equipment recording the biggest increase at 60.8%.

Meanwhile, seven industrial divisions recorded declines in production, with electrical equipment registering the largest annual decline of -16.4%.

The average manufacturing capacity utilization rate reached 70.7% in May against 69.4% in April.

Of the 22 industry divisions, 20 recorded an average capacity utilization rate of at least 60%, led by furniture (81.4%), apparel (79.2%) and other products non-metallic minerals (78.6%).

Of the total number of responding establishments, 24.3% were operating at full capacity or 90-100%.