The country’s factory output recorded an increase of 3.4 percent in June, according to the Philippine Statistics Authority (PSA).
The latest Volume of Production Index (VoPI) growth rate eased from the 7.7 percent recorded in May, however it reversed the 0.04 percent decline a year ago.
According to the PSA, the slower annual growth of the VoPI in June 2023 was mainly brought about by the annual declines in manufacture of food products, -3.2 percent from 6.9 percent annual increment in the previous month; fabricated metal products, except machinery and equipment, -36.4 percent from -2.9 percent in the past month; and beverages, -7.7 percent from 4.8 percent annual increase in June 2023.
Of the remaining 19 industry divisions, 10 exhibited annual deceleration in their indices during the period.
In contrast, there were 9 industry divisions that recorded annual increases in June 2023. The highest annual upturn was led by printing and reproduction of recorded media at 34.6 percent.
Meanwhile, the Value of Production Index for manufacturing increased by 3.9 percent annually in June 2023.
This was slower than its year-on-year growth of 9.9 percent in the previous month.
In June 2022, the VaPI recorded an annual growth rate of 7.8 percent.
Michael Ricafort, Rizal Commercial Banking Corp. chief economist, said the continued year-on-year growth in the latest manufacturing data was partly due to easing year-on-year inflation trend that somewhat eased the inputs costs of manufacturers, amid the decline in most of the major global commodities prices such as crude oil among 1.5-year lows, natural gas among two-year lows, coal among two-year lows as of June 2023; also the decline in the world prices of industrial metals and other inputs used by local manufacturers during the month.
However, Ricafort said global crude oil prices corrected to 3.5-month highs recently.
“The year-on-year growth in manufacturing production slowed after the seasonal increase in business/economic activities during the Holy Week Holidays in April 2023 and after the summer vacation season until around May 2023,” Ricafort said.
“Further reopening of the economy towards greater normalcy such as the faster pick up in local and foreign tourism and in other business/economic activities with no more large scale COVID lockdowns… fundamentally led to more production, sales, incomes, employment of some local manufacturing industries. For the coming months, these would be supported further by the lifting of the COVID state of national emergency since July 22, 2023,” he added. Angela Celis
