The country’s factory output grew at a faster pace of 5.7 percent in July, the Philippine Statistics Authority (PSA) reported yesterday.
According to the PSA, the volume of production index (VoPI) in July recorded a better increase versus the previous month’s 3.4 percent and July 2022’s 3.6 percent.
The PSA said the higher annual growth of the VoPI in July 2023 was mainly brought about by the annual increases in the manufacture of beverages, 12.6 percent from 11.4 percent annual decrease in the past month; coke and refined petroleum products, 36.2 percent from 15.9 percent in the previous month; and food products, 1.2 percent from 3.1 percent annual decrement in June 2023.
Meanwhile, the value of production index for manufacturing also continued to increase at an annual rate of 5.7 percent in July 2023.
This was faster compared with its year-on-year growth of 4.2 percent in the previous month.
However, the latest figure is slower compared to the double-digit annual increment of 12.1 percent in the same month last year.
Michael Ricafort, Rizal Commercial Bank Corp. chief economist, said the month-on-month and year-on-year improvement in manufacturing production volume in July 2023 may be attributed to the seasonal increase in production, and other economic activities in the third quarter in preparation for the seasonal increase or even peak in demand/sales for many businesses and industries during the fourth quarter.
“Many manufacturers and producers ramp up importation, production, inventory building and eventually distribution to the domestic and export markets in preparation for the increased demand/sales in the 4Q holiday spending season,” Ricafort said.
“The opening of the new school year and preparations for which also partly led to some pick up in manufacturing/production activities. The storm damage since the latter part of July 2023 also led to some repair/rehabilitation/restoration activities on facilities, especially in hard hit areas, thereby leading to some pick up in production activities,” he added.
