PHL August imports down 1.3% on slower shipments of electronics, fuel products

(Updated 4:13 p.m.) Merchandise imports contracted in August, pulled by slower shipments of electronic and fuel products, the top two imported commodities, the Philippine Statistics Authority (PSA) said Thursday.

 

Import payments decreased by 1.3 percent to $5.491 billion from $5.564 billion a year earlier, PSA data showed. The August figures also compared with the revised 0.2 percent decline in July.

 

"The decrease in total imports was due to the negative performance of two of the top ten major commodities, namely electronics products and mineral fuels, lubricants and related materials," the PSA said.

 

There were significant declines in spending for imported raw materials and intermediate goods and mineral fuels and lubricants, offsetting the year-on-year gains in consumer and capital goods, the National Economic and Development Authority (NEDA) said in a statement.

 

“Although relatively in better condition than last year, the gradual softening in imports has been observed since the 24.7-percent growth seen last January, steadily sliding to its slowest growth as of August this year," NEDA Director-General Arsenio M. Balisacan said in the statement.

 

"Despite the gains from increased imports of consumer and capital goods, reduced purchases of imported raw materials and intermediate goods and mineral fuels and lubricants dragged down imports growth in August 2014,” he added.

'Seasonal factors'

 

Total imports in January to August increased by 4 percent to $42.446 billion from $40.81 billion a year earlier, PSA data showed.

 

While the August data showed weakness, the imports number is still positive for the eight months this year, Security Bank Corp. economist Patrick Ella told GMA News Online.

 

"We're still up year-to-date and that's what I'm interested in. Imports are largely inputs to exports and our exports to the US, China and Japan are growing," he added.

 

"Domestically, the recent slowdown in imports may reflect market sentiment of sluggish demand due to seasonal factors. But we remain vigilant should this sluggish growth in imports turn out to be a signal of a more pessimistic condition of the global economy, which may spill over locally," Balisacan said.

 

Inbound shipments of mineral fuels, lubricants and related materials, decreased by 2.6 percent to $1.263 billion from $1.296 billion, accounting for 23 percent of the total import bill. 

 

Imports of electronics products decelerated by 15.4 percent to $1.135 billion from $1.341 billion, the second largest imported commodity group with a 20.7 percent share to the total.

Port congestion
 

China remained the biggest source of imports, accounting for 14.7 percent of the total valued at $806.52 million. 

 

The US accounted for 7.8 percent valued at $428.79 million.

 

Singapore was the third largest source of shipments to the Philippines, while the Taiwan ranked fourth and Korea, fifth.

 

Balisacan noted the issue of port congestion is still a big threat to imports and exports.

 

"Although the truck ban has been lifted to ease congestion in Manila ports, cramped port yards remain an issue that may still have an impact on external trade. These should further be monitored and given ample solution to ease the flow of goods traversing Manila ports," he said. – VS, GMA News