INDUSTRIAL output continued to grow in August from a year earlier on the back of higher production of capital goods and exports-oriented products, the latest Monthly Integrated Survey of Selected Industries (MISSI) released by the Philippine Statistics Authority (PSA) on Tuesday showed.
Manufacturing output’s sustained positive growth was driven by the increase in new orders and sales volume as well as expansions of new manufacturing firms despite the weak global economy, the National Economic and Development Authority (NEDA) said in a separate statement.
The volume of production index (VoPI) grew by 13.5 percent in August from 2.2-percent a year earlier. It was also higher than the revised 11.2 percent recorded in July.
The value of production index (VaPI) rose by 8.4 percent from -5.8 percent in the same comparable period, and higher than the revised 6.6-percent the previous month.
“We expect the firms to remain in the expansion mode in the coming months due to the increase in their operating capacity and purchasing activities,” NEDA Officer-in-Charge and Rosemarie Edillon said.
The growing VoPI signals an expansion and recovery of the sector from the relatively weak performance last year, according to the NEDA.
The food subsector grew by 11.1 percent and 13.3 percent in volume and value of production, respectively. These were improvements from the -14.5 percent and -14.8 percent growth rates year-on-year.
The beverages subsector also recorded 16.1 percent and 21.3 percent growth rates in terms of volume and
value of production, reflecting improvements from -7.5 percent and 0.7 percent.
For intermediate goods, the petroleum products subsector posted 2.3-percent and -6.8-percents growth rates in terms of volume and value of production, also signifying improvements from -6 percent and -28 percent.
“In order to sustain and further boost the performance of the manufacturing sector, the mentation of support programs and projects, especially in low-income and low-productivity areas, must be continued and expanded,” Edillon said.
Investments in research and development activities must be prioritized to enhance productivity and competitiveness of local products and processes, especially from micro, small and medium enterprises, she noted
“What is important is that industries are able to produce quality goods and services at affordable prices, thus enabling more Filipinos to attain their aspiration, which is reflected in AmBisyon Natin 2040,” Edillon added.