Growth in Philippine manufacturing likely decelerated to 5 percent year-on-year in October from a double-digit pace of expansion last year, dragged by the slow approvals of new infrastructure projects, Moody’s Analytics said in its latest weekly report.
The Philippine Statistics Authority (PSA) is expected to release the official October manufacturing output data this week.
The latest Moody’s Analytics forecast is part of its Asia Pacific Preview report, which provides a summary of major economic data on the region due out this week. This unit of Moody’s provides expertise in economic and consumer credit analysis, credit research and risk measurement, enterprise risk management and structured analytics and valuation.
“Fixed investment from both the public and private sectors has weakened through 2014, partly as a result of the slowdown in government approval of new infrastructure projects,” the unit of Moody’s Corp. said.
The October estimate of manufacturing output by Moody’s Analytics marks a sharp downturn from the 20.7 percent increase posted in the year-earlier period, but slightly higher than the 3.2 percent improvement recorded in the preceding month.
The analytics firm had originally estimated the September manufacturing expansion at 7 percent.
“Industrial production has slowed in recent months, mirroring the broader economy’s cooling,” it said.
However, the analytics firm expects solid export demand and continued remittances from overseas will lift the Philippines’ domestic production in the coming months.
Total Philippine export earnings in September rose 15.7 percent to $5.85 billion from a revised $5.06 billion a year earlier.
Personal remittances by overseas Filipino workers reached $2.33 billion in September, higher than the $2.27 billion recorded in August and up 8.1 percent from a year earlier.