Industrial production in the Philippines rebounded in June in both volume and value from a year earlier, largely on growth in basic metals, the latest Monthly Integrated Survey of Selected Industries (MISSI) released by the Philippine Statistics Authority (PSA) on Wednesday showed.
The National Economic and Development Authority (NEDA) attributed the strong expansion of the manufacturing sector to a recovery in the production of construction-related manufactures.
However, it warned that industrial output is expected to weaken toward the third quarter, emphasizing that the acceleration in regional and rural development and infrastructure is important.
The volume of production index (VoPI) in June grew by 8.5 percent from a negative 1.7 percent growth year-on-year.
The June VoPI expansion was also better than the 7.3 percent recorded a month earlier.
The value of production index (VaPI) rose by 4.7 percent from the negative 7.9 percent in the same comparable period.
The growth was higher than the revised 2.7-percent increase the previous month.
Ten major industries add up to quicken the VoPI, the PSA said.
This signifies an improvement from the subdued growth in 2015 and reflects the sector’s strong production growth since the beginning of the year, according to Socioeconomic Planning Secretary Ernesto Pernia.
“The upswing in net sales performance was also a result of sustained domestic demand in the country,” he said.
Pernia, who is also the NEDA director general, stressed the strong growth of manufacturing indicates a resilient domestic economy that is supported by stable macroeconomic policies.
However, Pernia cautioned that industrial output might weaken toward the third quarter due to the seasonal slack in demand caused by interruption of business activities during the rainy season, as well as lower consumer demand, and expectations of higher oil prices.
“The government aims to accelerate regional and rural development, which will further boost domestic demand and investments, and provide additional employment in the near term,” he said.
The NEDA chief pointed out that it is important for complementary initiatives to enhance agricultural productivity and strengthen linkages across all production sectors to fast-track rural development necessary in achieving genuinely inclusive growth.
Pernia added that providing adequate and reliable infrastructure must be accelerated, alongside a review of bureaucratic and regulatory procedures to ensure that business-related operations, processes, and laws are appropriate for the current market conditions and societal needs.