Factory production contracted 1.8 percent in October from a year ago, as petroleum and beverage output weakened, according to the Philippine Statistics Authority.
The PSA said in its monthly integrated survey of selected industries the growth in the volume of production index, which represented the output of 20 biggest manufacturing sectors, slowed from the 8.7-percent expansion in October last year.
The contraction in October was a reversal of the three consecutive months of growth since the 0.2-percent increment in July.
“For the months and years ahead, the government expects the manufacturing sector to exhibit stronger growth,” said Economic Planning Secretary Arsenio Balisacan.
“But for this holiday season, driven by strong domestic demand, business firms are expected to increase production output in anticipation of brisker business activities. This will translate to higher volume of sales and possible expansion of businesses and new product lines,” he said.
Four major sectors registered double-digit decreases in the volume of production index, including petroleum products (-20.3 percent), beverages (-19.7 percent), food manufacturing (-15.7 percent) and wood products (-14.0 percent).
