The increase in production of construction products and export-oriented goods boosted the growth of Philippine manufacturing in May 2017, according to the National Economic and Development Authority (NEDA).
The Volume of Production Index (VoPI) for manufacturing in May 2017 grew 5.8%, faster than the 4.3% growth recorded in the previous month, according to the Philippine Statistics Authority’s latest Monthly Integrated Survey of Selected Industries (MISSI).
This also led to the 7.5% three-month moving average growth rate, reflecting the robust performance of the sector.
The Value of Production Index (VaPI) likewise remained positive with a growth of 3.6% for the month and a 5.9% three-month moving average expansion.
The positive performance was attributed to the acceleration in the manufacture of construction and export-oriented products, which include basic and fabricated metals and non-metallic mineral products.
Fabricated metals registered a record-high growth of 116.9% while basic metals and non-metallic products increased by 29.1% and 22.6%, respectively.
Socioeconomic Planning Secretary Ernesto M. Pernia said that construction products are expected to grow further toward the end of the year, backed by the government’s massive infrastructure development spending.
This includes funding the continuing implementation of major infrastructure projects such as the North Luzon Expressway-South Luzon Expressway Connector Road, Cavite-Laguna Expressway, and Philippine National Railway North-South Commuter Rail.
“Manufacturing output is expected to sustain its growth toward the end of the second quarter, driven by buoyant domestic demand and optimistic business outlook,” Pernia said in a statement.
Seventy-five flagship projects have been identified by the administration to address the country’s huge infrastructure deficit.
Meanwhile, Pernia said it is important to streamline efforts across all levels of government to ensure inclusive innovation.
“Bureaucratic procedures at the national and local levels should be simplified across the country, from urban centers to far-flung areas. Market-driven research should also be made available to everyone so that firms, whether small or large, can expand production and reach larger markets,” he said.
Pernia noted that among the pillars of the Philippine Development Plan 2017-2022 is increasing the country’s growth potential (“patuloy na pag-unlad”) through greater use of science and technology and increased innovation. The manufacturing sector stands to benefit much from this, Pernia said.
MISSI is a report that monitors the production, net sales, inventories, and capacity utilization of selected manufacturing establishments to provide flash indicators on the performance of the sector.
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