Industrial production fell in July, both in volume and value terms and reversing gains recorded a year earlier.
The volume of production index (VoPI) contracted by 1.1 percent while the value of production index (VaPI) decreased by a steeper 2.0 percent, the Philippine Statistics Authority (PSA) reported on Tuesday.
A year earlier saw both VoPI and VaPI growing by 12.1 percent and 7.7 percent, respectively.
Three major sectors — chemical products, textiles, and rubber and plastic products – primarily contributed to the VoPI and VaPI declines, the PSA said.
The National Economic and Development Authority (NEDA), however, said it remained optimistic about manufacturing growth for the rest of the year.
“We expect higher manufacturing outputs in the coming months as we expect an increase in consumer demand during the holiday, translating to higher production in volume and sales,” Socioeconomic Planning Secretary Ernesto Pernia said.
He added that strong macroeconomic fundamentals, acceleration of infrastructure development projects, and increased investment would provide additional support.
“We need to expand our production capacity to take advantage of strong domestic demand and benefits from free trade agreements,” Pernia said.
“In line with this, efforts must be given to accelerate the implementation of infrastructure projects and enhance the quality and cost-effectiveness of manufacturing-related services to ensure sustained growth.”