Factory output posts slower growth in May

Published July 7, 2022, 1:31 PM

by Chino S. Leyco

Factory output grew at a much faster pace in May due to strong production of machinery and equipment, the Philippine Statistics Authority (PSA) reported Thursday, July 7.

In its Monthly Integrated Survey of Selected Industries (MISSI), the PSA said the country’s volume of production index (VoPI) went up by 1.9 percent in May from 1.2 percent in the previous month.

The index growth, however, slowed compared with 267.2 percent posted in the same period last year.

The expansion in VoPI was brought about by the positive growth rates of 14 industry divisions.

Of these, manufacture of machinery and equipment except electrical was the major contributing factor with 50.7 percent annual growth rate.

On the contrary, the remaining eight industry divisions recorded downturns which was led by manufacture of electrical equipment with -19.7 percent annual rate.

According to the PSA, only 24.3 percent of the manufacturing firms surveyed operated at full capacity in May. Average capacity utilization of the factories stood at 70.7 percent.

About 38.9 percent of the establishments operated at 70 percent to 89 percent capacity and 36.8 percent of the respondents operated below 70 percent.

Meanwhile, the value of production index (VaPI) during the month also increased at a much faster rate as it posted a 8.9 percent jump last May from 7.6 percent in the previous month.

Fifteen major sectors reported positive growth rates in May, led also by manufacture of machinery and equipment except electrical.

On the other hand, the remaining seven industry divisions recorded decreases with manufacture of electrical equipment recorded the fastest annual decline of 16.4 percent.

Volume of net sales year-on-year slowed to 11.1 percent, while the rise in value weakened to 18.8 percent percent from 25.9 percent in April.