Gross revenues of key industries grew at a slower pace of 6.3 percent in the first quarter of this year after expanding 9.5 percent in the same period last year, the latest government data shows.
In the July 2014 issue of the Quarterly Economic Indices (QEI) of the Philippines, the Philippine Statistics Authority (PSA) said that among industries, the transportation and communications sector recorded two consecutive quarters of the fastest revenue increase at 15.7 percent for the period, rebounding from a contraction of 0.1 percent a year earlier.
Real estate also exhibited double-digit revenue growth of 13.4 percent, followed by trade with an increase of 7.1 percent and manufacturing with a 2.2 percent expansion.
On the other hand, finance and private services posted slower revenue growth of 6.7 percent and 5.1 percent, respectively.
The PSA said that while there was a slight improvement in job creation in the first quarter, the total compensation index—which reflects the salaries and wages paid out by industries in cash and in kind to employees—decelerated to 5.2 percent in the first quarter from the previous year’s growth of 8.0 percent.
The deceleration was attributed to declines in mining and quarrying (negative 4.9 percent from 18 percent), transportation and communication (5.9 percent from 15.8 percent), manufacturing (negative 2.9 percent from 6.8 percent) and trade (2.8 percent from 6 percent).
But the compensation index in real estate, private services and finance recorded their fastest growth at 25.8 percent, 11.9 percent, and 11.7 percent, respectively.
Meanwhile, the number of jobs in the country’s key industries as measured by the total employment index posted a slight improvement of 1.4 percent in the first quarter after growing by 1.3 percent in the previous year.
“This growth was largely contributed by the upturn of transportation and communication and trade, which rebounded to 8.7 percent and 3.8 percent from negative 3.2 percent and negative 1.8 percent, respectively, in the previous year,” the statistics agency stated.
The PSA further said that with the slowdown in the compensation index and the minimal growth in the employment index, the total compensation per employee index slowed to 3.7 percent from 6.6 percent last year. The deceleration was attributed to the downswing of transportation and communication, trade, manufacturing, and mining and quarrying, it said.
But the remaining industries such as private services, electricity and water, and finance recorded faster growth during the quarter, while real estate managed to bounce back from sluggish growth last year, the statistics agency said.