The Philippine manufacturing sector has dropped in both volume and value in March 2019, its fourth month in a row of decline, according to the Philippine Statistics Authority (PSA).
In its latest Monthly Integrated Survey of Selected Industries (MISSI), PSA reported that the Volume of Production Index (VoPI) and Value of Production Index (VaPI) in March 2019 declined by 9.2% and 5.4%, respectively. This is in contrast to the 11% growth in VoPI and 10.5% increase in VaPI in March 2018.
Eight major industry groups pulled down VoPI, led by furniture and fixtures (-25.5%), food manufacturing (-17.3%), and petroleum products (-17.2%). The drop in VaPI, meanwhile, was attributed to the decreases in the indices of three major industry groups led by food manufacturing (-20.3%).
The National Economic and Development Authority (NEDA) earlier said the heightened election-related spending will drive up demand for goods and services leading up to May and improve domestic demand in the second quarter of the year. Backed by optimistic business and consumer outlook, this will help the sector bounce back, the authority said.
NEDA, however, warned of the risks that need to be managed, such as El Niño that could prolong and further intensify the dry season, easily prompting a hike in power and water rates, which are essential inputs for the manufacturing sector.
