Philippine manufacturing output likely picked up speed in August from July but the pace of growth was still slower compared to year-ago levels, according to a Moody’s Analytics estimate.
In a weekly market report, Moody’s Analytics said that the country’s manufacturing output “continues to grow solidly” and may have expanded 11 percent year-on-year in August, supported by domestic demand, exports and private investments.
While this is higher than the 9.6 percent expansion recorded in July, it is still far below the 18.3 percent growth registered in August 2013.
The official August manufacturing output data is expected to be released by the Philippine Statistics Authority on October 9.
Moody’s Analytics said the recovery in domestic demand from the negative impact of Typhoon Yolanda (Haiyan) should provide a boost to the manufacturing industry.
It added that the continued improvement in exports through the third quarter should also contribute to growth in manufacturing activity while “solid private sector investment will continue to support production.”
In July, the country’s merchandize exports rose 12.4 percent to $5.5 billion from $4.9 billion a year earlier, according to PSA data.
The government has said that domestic demand remains robust and is one of the major drivers of economic growth, particularly household spending, which reflects upbeat consumer sentiment in the country.
The latest Moody’s Analytics forecast is part of its Asia Pacific Preview report, which provides a summary of major economic data expected to be released this week in the Asia Pacific region.
Moody’s Analytics is a division of Moody’s Corp. and provides expertise in economic and consumer credit analysis, credit research and risk measurement, enterprise risk management and structured analytics and valuation.