Industrial production grew at a slower pace in June, both in volume and value terms, based on latest data released by the government.
The volume of production index (VoPI) rose 8.1 percent, slower than the 9.8 percent recorded a year ago, while the value of production index (VaPI) grew 5.1 percent, down from 5.7 percent in June 2016, the Philippine Statistics Authority (PSA) reported on Thursday.
Declines were recorded in chemical products, machinery except electrical, rubber and plastic products, miscellaneous manufacturers, tobacco products, and beverages.
The National Economic and Development Authority, for its part, said the manufacturing sector had grown by an average of 10 percent in the first six months of 2017 due to sustained domestic and improved external demand.
This was higher than the 9 percent average recorded for the same period last year.
It said the growth was backed by increased production of food, basic metals, transport equipment, fabricated metal products, non-metallic mineral products, and export-oriented products.
“Looking ahead, the outlook for the manufacturing sector remains optimistic on the back of favorable domestic conditions such as stable inflation rate, robust economic demand, increased investments, and business confidence,” Socioeconomic Planning Secretary Ernesto Pernia said.
However, Pernia cautioned against possible domestic and external risks.
“We need to be ready for possible disturbances in business activities during the rainy season. External risks, on the other hand, include the planned interest rate hikes of the United States and the inward-looking trade policies of major economies,” he noted.