PHL factory output slows to 5.9% in April

The Philippine factory output grew at a slower pace in April from a year earlier, data released by the Philippine Statistics Authority (PSA) showed Friday.

In its Monthly Integrated Survey of Selected Industries (MISSI), the PSA said the volume of production index (VoPI) reflected a year-on-year growth of 5.9 percent from 10.1 percent growth in April 2016.

Month-on-month, the VoPI is also slower compared to 12.8 percent posted in March.

"Thirteen of the 20 major sectors contributed to the growth in VoPI with significant increases observed in the following: fabricated metal products (95.6 percent), furniture and fixtures (76.9 percent), petroleum products (51.7 percent), paper and paper products (36.5 percent), basic metals (28.5 percent), transport equipment (23.8 percent), footwear and wearing apparel (21.8 percent), food manufacturing (11.0 percent) and tobacco products (10.0 percent)," the PSA noted.

In a separate statement, the National Economic and Development Authority (NEDA) said manufacturing output forecasts remain positive despite slower growth in April.

"Despite the slowdown at the onset of the second quarter, manufacturing output is expected to sustain its growth following anticipated increases in demand during the harvest season and the enrolment period in schools," Socioeconomic Planning Secretary and NEDA chief Ernesto Pernia said.

"The government's 'Build Build Build' infrastructure program is anticipated to further increase construction activities in the country which will provide additional boost to the manufacturing sector," he added.

To sustain the growth of the manufacturing sector, the NEDA chief said research and policies must be pursued to increase product innovation, enhance investor confidence, and strengthen linkages across production sectors.

MISSI is a report that monitors the production, net sales, inventories, and capacity utilization of selected manufacturing establishments to provide flash indicators on the performance of the manufacturing sector. —KBK, GMA News