MANUFACTURING output likely rose 12 percent in September from a year earlier, stoked by brisk domestic demand and agricultural activity, the economic research arm of Moody’s Investors Service said over the weekend.
Factory output grew by 13.percent in August year-on-year. It expanded by 3 percent in September 2015.
The Philippine Statistics Authority (PSA) is due to release the September output data on Thursday, November 10.
“Philippine industrial production growth will likely maintain its blistering pace, rising 12 percent year-on-year in September, compared with 13.6 percent in August,” it said.
The rapid growth in domestic investment and consumption has been the main driver of the manufacturing sector, according to Moody’s Analytics. It said the agriculture sector provided additional boost after hurdling the negative impact of El Niño in 2015.
The manufacturing sector grew by 13.5 percent as measured by the Volume of Production index (VoPi) in August, compared with 2.2 percent in August 2015 and 11.2 percent in July 2016.
There was a notably higher production of capital goods and export products in August.
Manufacturing companies would be in an expansion mode in the coming months due to higher operating capacity and purchasing activities, the National Economic and Development Authority (NEDA) has said.
The growing VoPi signals the expansion and recovery of the sector from the relatively weak performance last year, according to the NEDA.
“In order to sustain and further boost the performance of the manufacturing sector, the implementation of support programs and projects, especially in low-income and low-productivity areas, must be continued and expanded,” it said.
Investment in research and development must be a priority to enhance both productivity and the competitiveness of local products and processes especially from micro, small and medium enterprises, it 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,” it added.