‘April manufacturing dragged by low oil prices’

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Output likely slowed to 5.8% in April from 13.6% in March – Moody’s Analytics

Manufacturing output in April likely slowed sharply from double-digit rates in March and in April last year, with low oil prices pushing down output in the chemical and petroleum sectors, the economic research arm of Moody’s Investors Service said in its latest weekly outlook.

The Philippine Statistics Authority is expected to release the preliminary April manufacturing output data next week.

Moody’s Analytics said it expects the figures to show manufacturing output rose 5.8 percent in April after the sector posted a 13.6 percent increase in March.


Comparative output from April last year showed a 10.8 percent year-on-year expansion.

“The Philippines’ industrial production likely grew 5.8 percent year-on-year in April, down from March’s 13.6 percent surge,” Moody’s Analytics said.

“Buoyant domestic demand is boosting manufacturing and food production… But low oil prices continue to drag chemical and petroleum production,” it added.

Measured by the Volume of Production index (VOPi), the 13.6 percent rate of growth in manufacturing in March was the fastest in 15 months, or since December 2013, when the VOPi posted 22.8 percent growth.

The month-earlier figure also indicates a rebound from nearly 0.1 percent contraction recorded a year earlier.

In the first quarter of 2015, manufacturing grew 5.9 percent from a year earlier.

This subsector continues to be the industry sector’s top driver, contributing 4.2 percentage points to growth in the first three months of the year.

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