MANUFACTURING output in the Philippines likely accelerated to 11 percent in October from the preceding month and from a year earlier, fueled by rapid food and electronics production, the economic research arm of Moody’s Investors Service said over the weekend.
In September, factory output grew 9.9 percent year-on-year, and expanded by 1.5 percent in October 2015.
The Philippine Statistics Authority (PSA) is due to release the October output data on Friday, December 9.
Moody’s Analytics in its report also forecast that food production will grow solidly as the negative effects of 2015’s El Niño climate pattern fade.
It also said that higher external demand will boost electronics production.
The manufacturing sector grew by 9.9 percent as measured by the Volume of Production index (VoPi) in September, compared with 3 percent in September 2015 and 13.4 percent in August 2016.
Following the release of the September manufacturing data, the National Economic and Development Authority (NEDA) said the manufacturing sector continued to grow that month due to a sustained increase in capital goods production on the back of strong domestic demand and stable macroeconomic policies.
“This is a sign that our domestic economy is robust and resilient, despite the slow global economic recovery,” Socioeconomic Planning Secretary Ernesto Pernia had said.
With this, NEDA expects the sector to remain on its upward trajectory during the coming months, as firms anticipate the increase in demand during the approaching holiday season.
The NEDA chief stressed the country must foster a culture of innovation, research and development to boost productivity and remain competitive in an increasingly integrated global economy.
“We must ramp up our efforts in providing the economy’s infrastructure needs, particularly for the manufacturing and power sectors, to facilitate the smooth movement of goods and services and attract local and foreign investments,” he added.