Factory output rose 10.1 percent in July this year following increased domestic demand, on especially basic metal products, the Philippine Statistics Authority said Friday.
Data from the Monthly Integrated Survey of Selected Industries of the PSA showed the volume of production index rose significantly from a 0.1-percent growth year on-on-year.
The July growth matched the performance in the previous month and marked the 13th straight month of positive factory output rate since July 2015.
The National Economic and Development Authority said the production of transport equipment, construction-related goods and food pushed the manufacturing sector’s strong growth in the period.
Economic and Planning Secretary Ernesto Pernia said the strong manufacturing performance in July was a sign that the country’s economy remained resilient despite external shocks in the global market.
“The upbeat private consumption and investments continued to drive manufacturing growth. This growth shows that our economy has remained resilient to the continuing weakness in global demand for export-oriented manufactured goods caused by uncertainties such as low commodity prices and the EU debt crisis,” Pernia said.
The Value of Production Index rose 5.6 percent, also a turnaround from the 6.6 percent decline in July 2015.
Volume of Net Sales Index increased 4.3 percent, suggesting a strong domestic demand in the country. Meanwhile, the Value of Net Sales Index posted a marginal decline of less than 0.1 percent.
The double-digit production growth in transport equipment in July, meanwhile, indicated a strong demand for light commercial vehicles.
The poduction of construction-related goods was strong for rubber and plastic products as well as basic metals, particularly non-ferrous metals.
“Furthermore, improved efficiencies, lower material prices, increases in out-of-home food consumption, and the growing number of convenience stores nationwide likewise contributed to the positive performance of food manufacturing,” said Pernia, who is also director-general of Neda.
He cautioned against seasonal factors such as the interruption of business activities during the rainy months, the planting and closed milling season, and closed fishing activities in Davao Gulf from July to September that might affect industrial production in the third quarter.
“Government interventions to support the performance of the manufacturing sector must be continued to ensure that the sector sustains its upward trajectory. Public and private investments in research and development must be encouraged to enhance the competitiveness of domestic manufacturers in the global market,” said Pernia.
