Factory output growth slightly eased in May as transport equipment and food production slowed while chemical output declined at a faster pace, according to the Philippine Statistics Authority (PSA).

In its latest monthly integrated survey of selected industries (MISSI) report on Tuesday, July 7, the PSA said the volume of production index (VoPI), a proxy for factory output, grew by 10.2 percent year-on-year last May.

The expansion was slower than the 11.7-percent growth in April but marked a turnaround from the 0.3-percent contraction recorded a year ago. Factory output grew by six percent from January to May compared with the same five-month period last year.

The PSA attributed the slowdown mainly to transport equipment production, which fell by 1.4 percent after expanding by 9.8 percent last April.

Food manufacturing also grew at a slower pace of 1.7 percent from 4.5 percent, while chemical and chemical products output contracted by 14.8 percent, steeper than the 2.1-percent decline a month ago.

Of the remaining 19 industry divisions, 12 posted annual increases in output, while seven recorded declines.

Coke and refined petroleum products, computer, electronic, and optical products, as well as basic metals were the top three contributors to the overall growth in factory output in May.

In particular, output of coke and refined petroleum products surged by 73.3 percent, while computer, electronic, as well as optical products production rose by 15.8 percent. Basic metals output increased by 21.6 percent.

Within food manufacturing, the slower growth was traced mainly to other food products, including bakery products, sugar, and condiments, whose output rose by only 0.8 percent in May from 14 percent in April.

Dairy production contracted by a faster 16.1 percent from seven percent, while growth in meat processing and preservation eased to 26.8 percent from 34.3 percent.

Prepared animal feeds production also grew at a slower 21.1 percent from 24.2 percent.

Meanwhile, the value of production index (VaPI) rose by 13.5 percent year-on-year last May, slower than the 14.6-percent increase last April but reversing the 0.5-percent decline a year ago.

The PSA similarly attributed the slower VaPI growth mainly to transport equipment, whose annual increase eased sharply to 0.9 percent from 12.6 percent.

Food manufacturing growth also slowed to 3.1 percent from 6.1 percent, while the value of chemical and chemical products production fell by 11.5 percent after growing by one percent a month ago.

On the sales side, the volume of net sales index (VoNSI) grew at a faster 4.2 percent in May from 3.7 percent in April, although this was slower than the 6.8-percent increase a year ago.

The acceleration was mainly driven by coke and refined petroleum products, whose sales volume surged by 74.6 percent from 58.3 percent, as well as basic metals, which rebounded by 3.8 percent from a 9.3-percent decline.

The value of net sales index (VaNSI), meanwhile, increased by 7.2 percent last May, faster than the 6.4-percent growth last April and 6.6-percent expansion a year ago.

The average capacity utilization rate of factories improved to 78.8 percent in May from 78.5 percent in April and 77.1 percent a year ago.

More than a third, or 36.1 percent, of establishments operated at 90 percent to full capacity, while 40.6 percent ran at 70- to 89-percent capacity. The remaining 23.3 percent operated below 70-percent capacity.