Production output up in January — PSA

Philippine manufacturing output recovered in January after four consecutive months of declines, the Philippine Statistics Authority (PSA) reported Tuesday.

Data released by the PSA revealed that the Value of Production Index (VaPI) rose to 20.4 percent in January versus the 13.7-percent growth reported in December 2017.

This was driven by the growth in twelve major sectors, led by printing, which saw a growth of 117.4 percent.

Machinery (excluding electrical) followed with a 37.4-percent growth, basic metals with 35.7 percent, petroleum products with 32.7 percent, beverages with 31.2 percent, chemical products with 30.1 percent, and non-metallic mineral products with 17.8 percent.

Other sectors which reported growth include electrical machinery with 17.0 percent, leather products with 16.3 percent, paper and paper products with 14.1 percent, miscellaneous manufactures with 13.0 percent, and food manufacturing with 12.6 percent.

In terms of the Volume of Production Index (VoPI), a growth of 21.9 percent was registered in January.

Both the VaPI and VoPI reported declines for four consecutive months from September to December 2017.

In a separate statement, Socioeconomic Planning Secretary Ernesto Pernia said he expects growth to be sustained this year.

"Manufacturing output is expected to sustain growth in 2018 on the back of robust consumer demand, higher government consumption, and continued gains in investments," he said.

"The sustained momentum in global trade growth will also provide additional boost to manufacturing growth, particularly export-oriented sectors," he added.

Pernia flagged, however, downside risks to growth such as the depreciation of the Philippine peso, higher global commodity prices, and weather-related disturbances.

“The perceived negative effects, however, will be offset by improved infrastructure that is partly being financed by TRAIN," he said.

Under the Build, Build, Build program, the government plans to spend over P8 trillion until 2022, largely funded by government revenues from taxes.

This year alone, the Philippines plans to roll out 76 big-ticket projects cumulatively valued at $35.5 billion or P1.1 trillion.

"Moreover, the succeeding packages of the TRAIN are intended to make our tax regime internationally competitive," Pernia said.

The Department of Finance (DOF) on January 15 submitted the second package of the tax reform program to Congress, seeking to reduce corporate income tax (CIT) rates and modernize fiscal incentives. — BM, GMA News