Manufacturing expands 9.1%

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Factory output expanded by 9.1 percent in September, faster than the previous year’s and month’s level, according to the Philippine Statistics Authority (PSA).

The latest Monthly Integrated Survey of Selected Industries showed  the Volume of Production Index (VoPI) for manufacturing registered a year-on-year increase of 9.1 percent in September 2023.

This was faster than the annual growth rate of 6.8 percent in the previous month. In September 2022, the VoPI recorded an annual increase of 4.5 percent.

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According to the PSA, the higher annual growth of the VoPI in September 2023 was mainly brought about by the annual increases in the manufacture of coke and refined petroleum products, 78.6 percent; of computer, electronic and optical products, 2.9 percen; and of basic metals, 14 percent.

The Value of Production Index (VaPI) increased by 8.9 percent in September 2023, faster compared with the 7.5 percent growth in the previous month.

However, it is slower than the double-digit spike of 12.6 percent in the same period last year.

The expansion in the annual growth of the VaPI in September 2023 was mainly attributed by the PSA to the higher annual increase in the manufacture of coke and refined petroleum products industry division at 66.9 percent.

Other main contributors to the higher year-on-year growth of VaPI were manufacture of computer, electronic and optical products with an annual growth rate of 2.9 percent during the period, and manufacture of basic metals with higher annual increase of 9.4 percent in September 2023.

Based on responding establishments, the average capacity utilization rate for the manufacturing section in September 2023 was reported at 74.3 percent from 74 percent in the previous month.

All industry divisions reported capacity utilization rates of more than 50 percent during the month.

The top three industry divisions in terms of reported capacity utilization rate were manufacture of machinery and equipment except electrical (81 percent), manufacture of rubber and plastic products (80.1 percent) and manufacture of computer, electronic and optical products (79.4 percent).

The proportion of establishments that operated at full capacity was 25 percent of the total number of responding establishments. Meanwhile, 40 percent operated at 70 to 89 percent capacity, and 35 percent operated below 70 percent capacity.

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