The manufacturing sector posted slower growth in terms of volume and value in September on base effects and higher inflation.
Latest data from the Philippine Statistics Authority showed that the value of production index rose 10 percent in September, slower than the August annual growth of 11.8 percent. In September 2021, the VaPI accelerated 124.6 percent.
The volume of production Index grew 2.4 percent in September, smaller than the previous month’s 4.4 percent. In September 2021, VoPI expanded at an annual growth rate of 124.3 percent.
“The continued growth in manufacturing, though slower year-on-year amid some normalization of denominator/base effects, may be largely attributed to the further reopening of the economy towards greater normalcy,” Rizal Commercial Banking Corp. chief economist Michael Ricafort told Manila Standard through an SMS.
He said the offsetting factors that slowed the growth of manufacturing were higher inflation rate, weaker peso that increased import and input costs and rising interest rates.