Philippine manufacturing output fell in November last year, dragged down by declines in food production, transport equipment, and electronics.
The Philippine Statistics Authority (PSA) reported that the Volume of Production Index (VoPI) for the manufacturing sector decreased by 4.2 percent year-on-year in November 2024, following a 0.7 percent increase in October 2024.
"The downtrend in the year-on-year growth rate of VoPI for manufacturing in November 2024 was primarily driven by the same top three industry divisions that contributed to the decline of VaPI for manufacturing during the period," the PSA said.
These were the manufacture of food products, transport equipment, and computer, electronic and optical products.
The manufacture of food products recorded a 0.8 percent annual decline during the month, compared to a 5.3 percent annual increase in October 2024.
This decline was attributed to lower output across all eight industry groups within the sector, particularly the manufacture of other food products such as bakery products, sugar, and condiments.
The transport equipment sector posted a 0.4 percent annual decline during the month from a 9.6 percent increase in the previous month.
The manufacture of computer, electronic and optical products also experienced a 5.6 percent annual drop in November 2024, following a 1.2 percent annual decline in October 2024.
Despite the decline in production volume, the average capacity utilization rate for the manufacturing sector remained relatively stable at 75.6 percent in November, down slightly from 75.8 percent in October.
The PSA said this indicates that manufacturers were maintaining a reasonable level of operational activity despite the challenges facing the sector.
The PSA also noted that the Value of Production Index (VaPI) for the manufacturing sector decreased by 3.9 percent year-on-year in November.
This decline was primarily due to the slower growth in the food products sector, as well as declines in the transport equipment and computer, electronics and optical products sectors.