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Philippine manufacturing growth slowed in December 2022

Philippine manufacturing continued to decelerate in December 2022 with the full-year growth rate halved compared with the previous year, government data released Thursday showed.

The Philippine Statistics Authority (PSA) reported the volume of production index (VoPI) growth at 4.8% last December, slower than the 5.9% in November and 19.2% in December 2021.

The PSA attributed the deceleration to the slower annual increments in the manufacture of transport equipment, which contracted by 1.0% from 14.3% the previous year; computer, electronic and optical products at 21.3% from 25.8%; and basic metals at -37.5% from -29.2%.

Slowdowns were also reported in the annual growth rates of the indices of eight industry divisions, while eight other industry divisions registered higher annual growth rates.

Among those that saw expansions were fabricated metal products except machinery and equipment posted the highest annual growth rate of 52.9% in December 2022.

The value of production index (VaPI) grew by 10.1%, also slower than the 12.5% in November and the 19.6% recorded in the same month of 2021.

“The slower year-on-year growth… was predominantly brought about by the slower annual increase in the index of manufacture of transport equipment industry division,” the PSA said.

Manufacture of transport equipment grew by 3.2%, slower than the 20.5% in November, while manufacture of computer, electronic, and optical products grew by 24.1%, slower than 32.3% the previous month.

The average capacity utilization rate for the manufacturing sector for the month was reported at 71.6%, lower than the 72.6% in the previous month.

Some 24.3% of establishments operated at full capacity or between 90% to 100%; some 40.7% operated at 70% to 89%; and 35.0% operated at below 70% capacity.

The latest figures brought the full-year volume of production index (VoPI) growth at 15.2%, slower than the 52.6% expansion recorded in 2021, but the second year of expansion after the -40.5% seen in 2020.

The value of production index (VaPI) grew by 22.5%, down from 49.2% in 2021 but higher than the 43.0% contraction in 2020. —KBK, GMA Integrated News