Forecasts for Philippine manufacturing output remain positive despite slower growth recorded for April 2017, according to the National Economic and Development Authority (NEDA).
In the Monthly Integrated Survey of Selected Industries (MISSI) of the Philippine Statistics Authority, the Volume of Production Index (VoPI) for manufacturing grew 5.9% in April 2017, lower than the 12.8% growth in the previous month and the 10.1% expansion in April 2016.
Similarly, the Value of Production Index (VaPI) eased to a growth rate of 3.7%, lower than the 12.1% in the previous month and the 6.1% in April 2016.
NEDA noted, however, that the three-month moving average growth rate for VoPI at 9.7% and VaPI at 8.2% reflected the robust performance of the sector.
“Despite the slowdown at the onset of the second quarter, manufacturing output is expected to sustain its growth following anticipated increases in demand during the harvest season and the enrolment period in schools,” Socioeconomic Planning Secretary Ernesto Pernia said in a statement.
The growth in manufacturing output in April 2017 is attributed to the sustained production of petroleum products, transport equipment, and basic metals, all of which booked double-digit increases.
In particular, petroleum products posted a 51.7% spike in production due to higher demand for gasoline from Vietnam, Japan, Saudi Arabia, Malaysia, and Indonesia.
“The demand for diesel is expected to increase as governments in the Middle East stock up for the Ramadan season,” Pernia said.
Further, the 28.5% growth in the production of basic metals drove the sustained growth of construction-related manufactures.
“The government’s ‘Build, Build, Build’ infrastructure program is anticipated to further increase construction activities in the country which will provide additional boost to the manufacturing sector,” the Cabinet official said.
To sustain the momentum of the manufacturing sector, Pernia advised that research and policymaking must be pursued to intensify product innovation, enhance investor confidence, and strengthen linkages across production sectors.
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