The Philippines’ manufacturing sector posted double-digit growth in February, higher than the growth in January but lower compared to the same month last year.
The Philippine Statistics Authority’s Monthly Integrated Survey of Selected Industries (MISSI) reported that the Volume of Production Index (VoPI) for manufacturing grew 10.7% in February 2017.
The growth was due to the upsurge in production of petroleum products, food, basic metals, and transport equipment, according to the National Economic and Development Authority (NEDA).
This is slower than the 11.6% growth recorded in the same month last year but higher than the 7.1% growth recorded in the previous month.
“We must double our efforts to strengthen the manufacturing sector and help it realize its full potential,” Socioeconomic Planning Secretary and NEDA director general Ernesto M. Pernia said in a statement.
“The sector is expected to benefit from an investment-led growth supported by stable inflation, increased spending on infrastructure and rural development, strong private consumption, and continued gains in overseas remittances,” he added.
Meanwhile, the Value of Production (VaPI) jumped to 13.6% in February 2017 from 5.4% from the previous month.
For consumer goods, furniture and fixtures posted a double-digit growth of 21.9% in volume and 16.6% in value of production, while food manufactures grew in volume and value of production by 20.6% and 19.3%, respectively.
“We must encourage firms to utilize science, technology and innovation to help them keep up with the increasing domestic and regional demands,” said Pernia.
For intermediate goods, petroleum products soared in both volume and value of production, registering a double-digit growth of 47.1% and 95%, recovering from its contraction in the same period last year.
Similarly, wood and wood products swelled to 19.5% and 21.2% in volume and value of production, while non-metallic mineral products grew by 26.3% and 20%.
“This is a positive response to the government’s and private sector’s continuous efforts to ramp up infrastructure, as well as the increasing demand for housing from our expanding middle-class population,” the Cabinet official said.
The increase in production of construction-related manufactures is also bolstered by the positive year-on-year growth in the construction materials wholesale price index which grew by 4% in February 2017.
“We must empower micro, small, and medium enterprises to participate in the global market by enhancing their access to technology that will help them achieve economies of scale and enhance their capacity to meet the international demands in terms of quality and quantity,” Pernia said.
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