The country’s factory output posted a two-digit growth in December, although at a slower pace versus the previous month’s year-on-year growth, according to the Philippine Statistics Authority (PSA).
The PSA’s Monthly Integrated Survey of Selected Industries (MISS) showed the Volume of Production Index (VoPI) grew by 17.9 percent annually in December 2021, from its previous month’s annual growth of 25.8 percent.
In December 2020, VoPI dropped by 14.8 percent.
The PSA said the increase in VoPI was brought about by the positive growth rates of 11 industry divisions.
Of these, manufacture of wood, bamboo, cane, rattan articles and related products was the major contributing factor with 122.6 percent growth rate.
On the contrary, the remaining 11 industry divisions recorded decreases, led by manufacture of basic pharmaceutical products and pharmaceutical preparations with a contraction of 30.2 percent.
“The slower growth in manufacturing volume of production index… though still decent at double-digit growth levels, could be attributed to some normalization/higher base or denominator effects, compared to relatively low base/denominator effects earlier in 2021/a few months ago that mathematically resulted in triple-digit or at least high double-digit manufacturing growth rates as a result,” Michael Ricafort, Rizal Commercial Banking Corp. chief economist, said in an emailed statement.
The PSA also reported the Value of Production Index (VaPI) for manufacturing continued to register an annual increase of 18.6 percent in December 2021, although also slower when compared to the annual growth of 27.2 percent in the previous month. In December 2020, VaPI declined by 18 percent.
The PSA said based on responding establishments, the average capacity utilization rate for the manufacturing sector in December 2021 was at 67.3 percent, from 67.8 percent in the previous month. – Angela Celis
