Manufacturing output down in February —gov't data

Philippine manufacturing output slowed in February due mainly to the decline recorded in food products, government data released on Tuesday revealed.

Preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI) of the Philippine Statistics Authority (PSA) showed that the volume of production index (VoPI) expanded by 7.2% in February.

This follows the 10-month high of 11.2% in January and compares with the 69.8% growth recorded in February 2022.

The manufacture of food products accounted for 29.7% of the downtrend of the manufacturing output for the month, with the index down to 6.4% from 14.0% in January.

Slower annual increases were seen in the manufacture of grain mill products, starches, and starch products; dairy products; and prepared animal feeds.

Slower annual growth rates were also seen in the manufacture of electrical equipment at 22.3%, transport equipment at 27.3%, beverages at 22.0%, basic pharmaceutical products at 3.2%, and paper and paper products at 1.0%.

Negative growth rates were recorded in the manufacture of tobacco products at -13.0%; leather and related products at -8.9%; textiles at -5.8%; wood, bamboo, cane, rattan articles, and related products at -3.1%; and other non-metallic mineral products at -2.7%.

The value of production index (VaPI) also declined to 11.1% from 16.0% in January and 77.2% in February 2022, also led by the slower annual growth in the manufacture of food products.

Other main contributors to the slower annual growth in the value of production were the manufacture of computer, electronic, and optical products; other non-metallic mineral products.

The value of net sales index (VaNSI) stood at 8.7%, down from 19.5% in January and 20.3% in the same month last year. The volume of net sales index (VoNSI) fell to 4.9% from 14.5% in January and 17.9% a year ago.

The average capacity utilization rate for the month was reported at 72.6%, down from 72.8% in the previous month.

Some 22.1% of the establishments operated at full capacity or between 90% to 100%; 35.0% operated at 70% to 89% capacity; and 42.9% operated below 70% capacity.

The latest figures are in line with the results of the S&P Global survey which showed that the manufacturing output slowed due to ongoing supply chain concerns, port congestion, and transportation conditions. —KBK, GMA Integrated News