Factory output climbed 13.5 percent in August from a year ago, marking the 14th straight month of growth as companies continued to expand to meet rising domestic demand.
“Manufacturing output sustaining positive growth despite the weak global economy is driven by the increase in new orders and sales volume as well as expansions of new manufacturing firms,” said National Economic and Development Authority deputy director-general Rosemarie Edillon.
Data from the Philippine Statistics Authority’s monthly integrated survey of selected industries showed the volume of production index increased 13.5 percent in August, the fastest in seven months.
“We expect the firms to remain in the expansion mode in the coming months due to the increase in their operating capacity and purchasing activities,” Edillon said.
The growth in August pushed the three-month moving average growth rate to 11.8 percent, a sign of expansion and recovery of the sector from the relatively weak performance last year.
Meanwhile, the value of production index also rose 8.4 percent, a turnaround from the 5.8-percent decline in August 2015. The three-month moving average also grew 7 percent.
For consumer goods, the food subsector recorded a double-digit growth in August with 11.1 percent and 13.3-percent growth rates in volume and value of production, respectively. These are improvements from the -14.5 and -14.8 percent growth rates last year.
The beverages subsector also recorded 16.1 percent and 21.3 percent growth rate in volume and value of production. These are also improvements from -7.5 and 0.7 percent performances last year.
“In order to sustain and further boost the performance of the manufacturing sector, the implementation of support programs and projects especially in low-income and low-productivity areas must be continued and expanded,” said Edillon.
She said increased investments in research and development activities should be prioritized to enhance the productivity and competitiveness of local products and processes, especially from micro, small and medium enterprises.
“What is important is that industries are able to produce quality goods and services at affordable prices, thus enabling more Filipinos to attain their aspiration, which is reflected in AmBisyon Natin 2040,” said Edillon.