Industrial production — both in volume and value terms — recovered in August from a slump the previous month but growth moderated from a year earlier.
The volume of production index (VoPI) grew by 2.8 percent while the value of production index (VaPI) picked up 2.4 percent, the Philippine Statistics Authority (PSA) reported on Tuesday, rebounding from July’s revised 3.5 percent and 2 percent declines, respectively.
Both VoPI and VaPI grew by 13.3 percent and 8.5 percent, respectively, a year earlier.
The National Economic and Development Authority (NEDA) said construction-related manufactures led the recovery in output with basic metals, fabricated metal products, and non-metallic mineral products continues to increase at 28.5 percent, 89.5 percent, and 18.7 percent, respectively.
Export-oriented products similarly contributed to the recovery of the manufacturing sector as the production in furniture and fixtures, as well as leather products, remained positive at 35.6 percent and 21.9 percent, it said in a statement.
With the recovery of manufacturing output in August, NEDA said the sector is seen to improve in the last quarter of the year.
NEDA Officer in Charge and Undersecretary Rolando Tungpalan said that the growth in manufacturing will continue to improve in the fourth quarter, highlighting construction products as the key drivers for the said sector.
“Sustained infrastructure development, translating to increase in public construction expenditure, is anticipated not only to increase the growth of the manufacturing sector but also to support the continuous growth of the economy,” he said.
“The local production capacity and efficiency of construction-related manufacturers must be expanded to support our initiative of massive spending in infrastructure programs and projects,” Tungpalan added.
However, the NEDA official said that, although manufacturing growth remains optimistic, risks and uncertainties remain.
“Short-term upward inflationary pressures such as increase in global oil prices, as well as price increases in fish, corn, vegetables, flour and other cereal products, may affect cost of production. Typhoon occurrences may also interrupt business activities, resulting in lower manufacturing output,” he said.
Tungpalan is currently the officer in charge while Socioeconomic Planning Secretary Ernesto Pernia is on official travel abroad.