The Philippine manufacturing sector showed signs of recovery in October, with factory production declining at a slower pace compared to the previous month.
According to the Philippine Statistics Authority's (PSA) Monthly Integrated Survey of Selected Industries (MISSI), the Volume of Production Index (VoPI) for manufacturing registered a year-on-year decline of 1.8 percent in October.
This already rebounded from the five-percent drop in September, largely driven by a 6.8 percent growth in the beverage manufacturing sector.
The MISSI is a monthly survey conducted by the PSA to gather data on the performance of various industries in terms of production, sales, inventories, and employment.
For the first 10 months of the year, the average growth rate of the VoPI for manufacturing was 1.7 percent, slightly higher than the 1.4 percent increase recorded during the same period last year.
Beverage production significantly contributed to this trend, accounting for 29.7 percent of the VoPI growth.
Other key factors contributing to the slower annual decline in VoPI included a 26.4 percent annual growth in wood and bamboo product manufacturing and a 6.7 percent increase in transport equipment manufacturing, up from 3.2 percent in September.
Ten out of the 19 industry divisions recorded annual gains, while nine experienced declines. Basic metals, coke and refined petroleum products, and other non-metallic mineral products were the top contributors to the VoPI's year-on-year growth.
However, slower growth in dairy products, other food products, and meat processing led to a 5.9 percent slowdown in the VoPI for food product manufacturing.
The Value of Production Index (VaPI) also showed improvement, recording a smaller year-on-year decline of 2.2 percent in October, compared to a 6.3 percent drop in September. This was primarily driven by an 8.6 percent annual growth in the beverage manufacturing sector.
The average growth rate of VaPI for manufacturing for the first ten months of 2024 was 0.8 percent, similar to the annual increase recorded in 2023.
Similarly, the value of net sales showed a slower year-on-year decline of 4.4 percent in October, compared to a 4.8 percent drop in September. This was mainly attributed to a 16 percent annual increase in beverage manufacturing.
From January to October 2024, the average growth rate for the value of net sales was -0.4 percent, an improvement from the 1.9 percent decline recorded during the same period last year.
However, the volume of net sales fell by 4.1 percent in October, a faster decline than the 3.5 percent drop in September. This was mainly due to a 6.9 percent decrease in the manufacture of computer, electronic, and optical products, reversing a 1.1 percent increase in September.
Despite this, the average growth rate for the volume of net sales for the first ten months of 2024 was 0.5 percent, an improvement from the 1.4 percent decline recorded in the same period last year.
The average capacity utilization rate for the manufacturing sector in October was 75.7 percent, slightly higher than the 75.4 percent rate reported in September.
All industry divisions reported capacity utilization rates of over 60 percent, with the highest rates observed in the manufacture of machinery and equipment except electrical, other non-metallic mineral products, and textiles.