PSA manufacturing growth slowed to 2.4% in September 2022

Philippine manufacturing growth slowed in September with nine industry divisions posting annual decreases during the period, the Philippine Statistics Authority (PSA) reported Tuesday.

Data released by the PSA showed that the volume of production index (VoPI) recorded an annual growth of 2.4% in September, slower than the 4.4% in August and the 124.3% in September 2021.

Out of the 22 industry divisions, nine posted annual declines led by the manufacture of electrical equipment which contracted by 54.7%, followed by basic metals down 34.2%, and furniture down 11.5%.

Drops were also seen in beverages at -6.8%, printing and reproduction of recorded media at -6.5%, manufacture of rubber and plastic products at -4.9%, tobacco products at -3.0%, coke and refined petroleum products at -2.8%, and other non-metallic mineral products at -0.3%.

In terms of gainers, the fastest growth was seen in the manufacture of machinery and equipment except electrical which went up by 90.0%.

This was followed by wood, bamboo, can, rattan articles, and related products up by 77.6%; chemical and chemical products up 30.1%; fabricated metal products by 21.7%; manufacture and repair and installation of machinery and related equipment by 18.6%; paper and paper products up 16.7%; and transport equipment by 14.5%.

Increases were also seen in the manufacture of computer, electronic, and optical products; food products; textiles; wearing apparel; basic pharmaceutical preparations; and leather and related products including footwear.

Double-digit annual growth was recorded in the value of production index (VaPI) which was up 10.0% in September, but this was still slower than the 11.8% in the previous month and 124.6% in the same month last year,

Seven industry divisions recorded annual declines, led by the manufacture of electrical equipment which contracted by 53.5%.

Decreases were also recorded in the manufacture of basic metals (-32.3%); furniture (-9.9%); reproduction of recorded media (-7.1%); beverages (-1.3%); rubber and plastic products (-0.3%); and tobacco products (-0.1%).

Capacity utilization of the month averaged 71.5%, slightly higher than the 71.4% in August.

Some 22.0% of the total number of responding establishments said they operated at full capacity or 90% to 100%, 22.0% operated at 80% to 89% capacity; 17.1% operated at 70% to 79% capacity; 12.8% operated at 60% to 69% capacity; 14.4% operated at 50% to 59% capacity; and 11.8% operated at below 50% capacity. —KG, GMA Integrated News