PHILIPPINE industrial output in July posted double-digit growth from a year ago, driven by a surge in basic metals production, data from the Philippine Statistics Authority showed on Friday.
The PSA said that the Volume of Production Index (VoPI) posted a double-digit growth of 10.1 percent in July 2016, while the Value of Production Index (VaPI) registered growth of 5.6 percent from July 2015.
Based on PSA’s Monthly Integrated Survey of Selected Industries (MISSI) for July, basic metals production soared 64.1 percent by volume and 56.9 percent by value compared to the year-earlier period.
The PSA also noted increments in the value of production of several sectors such as transport equipment (33.7 percent), rubber and plastic products (27.1 percent), tobacco products (19.8 percent), wood and wood products (18.5 percent), beverages (15.8 percent), and food manufacturing (15.7 percent).
By volume, several industries posted double-digit growth particularly transport equipment (35.8 percent), rubber and plastic products (29.7 percent), machinery except electrical (27.2 percent), wood and wood products (19.7 percent), tobacco products (19.6 percent), food manufacturing (14.1 percent), and beverages (10.9 percent).
The National Economic and Development Authority (NEDA) attributed the country’s manufacturing growth to strong private consumption as well as to the production of transport equipment, construction-related goods, and food.
“Upbeat private consumption and investments continued to drive manufacturing growth. This growth shows that our economy has remained resilient to the continuing weakness in global demand for export-oriented manufactured goods caused by uncertainties such as low commodity prices and the EU debt crisis,” NEDA Socioeconomic Planning Secretary Ernesto Pernia said in a statement.
Meanwhile, the Volume of Net Sales Index (VoNSI) rose 4.3 percent led by basic metals, which grew by 44.4 percent, machinery except electrical (36.1 percent), wood and wood products (23.5 percent), leather products (17.5 percent), beverages (14.8 percent), furniture and fixtures (14.4 percent) and rubber and plastic products (13 percent).
NEDA noted that the rise in net sales volumes suggests strong domestic demand in the country.
On the other hand, the Value of Net Sales Index (VaNSI) slipped by less than 0.02 percent, an improvement from the 4.2 percent decline posted in the same period last year.
The PSA said the decline was due to a contractions in several sectors, particularly fabricated metal products (-28.2%), printing (-23.0%), petroleum products (-19.7%), transport equipment (-19.1%), textiles (-17.9%) and furniture and fixtures (-12.1%).
“Government interventions to support the performance of the manufacturing sector must be continued to ensure that the sector sustains its upward trajectory. Public and private investments in research and development must be encouraged to enhance the competitiveness of domestic manufacturers in the global market,” Pernia said.
Pernia added that cost-effective power and telecommunication services must be available and accessible to attract much-needed investments and ensure continuous and efficient production.