Manufacturing industry as measured by Value of Production Index (VaPI), grew at a slower rate of 1.5 percent in June from a two-digit increase of 10.6 percent in the previous month.
According to the results of the Monthly Integrated Survey of Selected Industries (Missi) released by the National Statistics Office (NSO), this can be attributed to the slowdown in the production values for petroleum products.
However, the major contributing sectors with significant increases in value of production were chemical products, and basic metals.
On a monthly basis, VaPI also increased at a slower rate of 0.8 percent in June primarily because of the two-digit increase in value of production reported by petroleum products, wood and wood products, and tobacco products.
Factory output, on the other hand, sustained its growth as Volume of Production Index (VoPI) registered an increment of 9.9 percent in June from the previous month’s two-digit growth of 21.7 percent.
“This was attributed to the diminished production outputs of petroleum products and electrical machinery,” the survey stated.
However, three major sectors contributed mainly to the increase in volume of production, namely: chemical products, furniture and fixtures, and basic metals.
Also, the VoPI’s month-on-month performance reflected a minimal increase of less than 1 percent or 0.8 percent in June.
Furthermore, average capacity utilization in June for total manufacturing slightly inched up 83.2 percent, as 50 percent of the 20 major sectors registered capacity utilization rates of 80 percent.
This was led by petroleum products; basic metals; non-metallic mineral products; machinery except electrical; electrical machinery; food manufacturing; chemical products; rubber and plastic products; paper and paper products; and wood and wood products.
The Missi added that the proportion of establishments that operated at full capacity was recorded at 22.6 percent in June, and about 55.1 percent of the establishments operated at a 70-percent to 89-percent capacity, while 22.3 percent of the establishments operated at below 70-percent capacity.
MAYVELIN U. CARABALLO