Factory output surged by 162.1 percent in April 2021, coming from a low base in the same period last year when the economy was at a standstill due to the enhanced community quarantine (ECQ).
The Monthly Integrated Survey of Selected Industries released by the Philippine Statistics Authority yesterday (PSA) showed the volume of production index (VoPI) went up by 162.1 percent in April 2021, recovering from a 73.3 percent annual decline in the previous month.
In April 2020, the annual decrease of VoPI was recorded at 64.8 percent.
Of the 22 industry divisions, 20 exhibited positive growths, 15 of which recorded 3-digit annual increases.
The fastest growth rate was registered in manufacture of basic metals at 687.5 percent.
Only two industries showed decreases: manufacture of coke and refined petroleum products (-32.3 percent) and manufacture of basic pharmaceutical products and pharmaceutical preparations (-18.9 percent).
The PSA also reported the value of production index (VaPI) for manufacturing rebounded in April 2021 as it posted an annual increase of 154.3 percent, from a 74.2-percent annual drop in the previous month.
The year-on-year growth rate in April 2021 was the first positive growth since April 2019 and the highest annual increase in the 2018-based data series, the PSA said. In April 2020, VaPI dropped at an annual rate of -66.6 percent.
The PSA said the increase in the VaPI was brought about by the positive growth rates of 20 industry divisions, 14 of which posted three-digit annual growth rates with manufacture of basic metals as the highest at 729.1 percent.
The remaining two industry divisions, namely, manufacture of coke and refined petroleum products and manufacture of basic pharmaceutical products and pharmaceutical preparations recorded double-digit declines of 24.5 percent and 19.4 percent, respectively.
Michael Ricafort, Rizal Commercial Banking Corp. chief economist, said in an emailed statement, the sharp increase in manufacturing was mainly due to very low base/denominator a year ago globally and locally, at the height of the two-month ECQ a year ago when public transportation and mobility were more restricted, resulting to many manufacturing industries shutting down or with sharply reduced operating capacity a year ago.
