Manufacturing posted its fifth straight double-digit growth in May, on a strong production of food, petroleum products, and transport equipment, data from the Philippine Statistics Authority show.
The Monthly Integrated Survey of Selected Industries showed that the volume of production index rose 19.8 percent in May, following a 0.6-percent drop in the same month last year. The growth, however, was slower than the 29-percent expansion in April.
The value of production index also recovered with a 21.3-percent growth in May from a 2.6-percent decline a year ago.
Economic Planning Secretary Ernesto Pernia said optimistic business sentiment and stable consumer confidence would likely support the further growth of the manufacturing sector in June.
“Higher demand due to school enrollment and harvest periods, expansion of businesses and new product lines, and ongoing rollout of public infrastructure projects are anticipated to further increase manufacturing production,” Pernia said.
Data showed that of the 14 major sectors that exhibited increases in the volume of production in May, seven sectors registered strong growth, led by printing with 117.8 percent.
Other significant increases were reported by petroleum products (33.3 percent), food manufacturing (32.5 percent), miscellaneous manufactures (19.2 percent), textiles (18.8 percent), electrical machinery (17.4 percent) and rubber and plastic products (12.6 percent).
Meanwhile, the 21.3-percent growth in value of production index in May was brought about by the expansion in 13 major sectors led by printing, with 107.2 percent.
Pernia said the manufacturing sector was also expected to benefit from the recently-ratified free trade agreement between the Philippines and the European Free Trade Association.
“This will provide additional boost to economic activities between the country and the EFTA member states,” Pernia said.
Once the FTA comes into force, the EFTA member states will accord duty-free market access to all industrial and fishery products from the Philippines.
“Despite the optimism, the government must not waiver in addressing factors that may hamper growth, including rising trade tensions and higher interest rates. Enhancing the production capacity of enterprises and addressing infrastructure gaps to decrease production costs will be important,” Pernia said.
Pernia said providing workers with the required knowledge and skills would further support the growth of the industrial sector.