The production of transport equipment, construction-related goods, and food pushed the Philippine manufacturing sector to another strong growth in July 2016, according to the National Economic and Development Authority (NEDA).
“The upbeat private consumption and investments continued to drive manufacturing growth. This growth shows that our economy has remained resilient to the continuing weakness in global demand for export-oriented manufactured goods caused by uncertainties such as low commodity prices and the EU (European Union) debt crisis,” said Socioeconomic Planning Secretary Ernesto Pernia in a statement.
The Philippine Statistics Authority’s Monthly Integrated Survey of Selected Industries for July 2016 showed that the Volume of Production Index grew 10.1%, a large improvement from the 0.1% growth in the same period last year.
The Value of Production Index grew 5.6%, a turnaround from the 6.6% decline in July 2015.
The Volume of Net Sales Index increased 4.3%, suggesting a strong domestic demand in the country while Value of Net Sales Index posted a marginal decline of less than 0.1%.
Also for July, NEDA said the double-digit production growth in transport equipment indicated a strong demand for light commercial vehicles.
Similarly, production of construction-related goods was strong for rubber and plastic products as well as basic metals, particularly non-ferrous metals.
“Furthermore, improved efficiencies, lower material prices, increases in out-of-home food consumption, and the growing number of convenience stores nationwide likewise contributed to the positive performance of food manufacturing,” Pernia, who is also NEDA director-general, said.
He cautioned, however, that seasonal factors such as interruption of business activities during the rainy season, planting and closed milling season, and closed fishing season in the Davao Gulf from July to September are expected to affect industrial production in the third quarter.
“Government interventions to support the performance of the manufacturing sector must be continued to ensure that the sector sustains its upward trajectory. Public and private investments in research and development must be encouraged to enhance the competitiveness of domestic manufacturers in the global market,” said Pernia.
The Cabinet official added that cost-effective power and telecommunication services must be available and accessible to attract much-needed investments and ensure continuous and efficient production.
Image courtesy of PANPOTE at FreeDigitalPhotos.net
