Manufacturing output surges to 7-mo. high in May

Output in the manufacturing sector surged in May as factories churned faster to meet domestic demand amid efforts to diversify from a slump in exports in the face of weak global demand.  

 

In a statement Wednesday, the National Statistics Office (NSO) reported that factory output as volume of production index (VoPI) grew at an annual rate of 20.4 percent in May, a seven-month high. 
 

Source: National Statistics Office

That was a significant jump from the revised 8.7 percent year-on-year increase in April and is the fastest since October 2012 when the sector grew by 20.7 percent.

 

Bank of the Philippine Islands economist Emilio Neri Jr. said the manufacturing activity reflected a shift among factories toward meeting the domestic demand than chasing foreign buyers. 

 

“Manufacturing activity seems to be servicing more of the domestic market as exports have been declining,” he said in a phone interview. 

 

Neri pointed out the increased manufacturing activity in “non-traditional export sectors” also mean that the Philippines is now diversifying its outbound shipments from electronics. 

 

These developments, he said, could sustain Philippine output which grew by 7.8 percent in the first quarter. 

 

“Petroleum products contributed significantly to the increase... followed by other major sectors that posted two-digit increases, namely, chemical products, basic metals, furniture and fixtures and electrical machinery,” the NSO said. 

 

Production of petroleum goods grew by 139.4 percent in May, while chemical products increased by 84.8 percent. 

 

Output in basic metals rose by 68.1 percent, furniture and fixtures by  56.6 percent, and electrical machinery by 12.0 percent. — VS, GMA News