Imports rose 6.7 percent in September from a year ago, the fourth straight month this year, on strong demand for raw materials and intermediate goods, the Philippine Statistics Authority said Wednesday.
Preliminary data released by PSA showed merchandise imports reached $6.17 billion in September, up from $5.8 billion in the same month last year. The figure brought total imports in the first nine months to $49.915 billion, or 2.3 percent higher than $48.803 billion registered a year earlier.
“Upbeat sentiment from the business sector and an overall improvement in consumer expectations for the coming quarter will likely keep imports afloat, especially those in the manufacturing and construction sectors. Improved purchasing power due to low inflation will also keep consumer demand vibrant in the succeeding months, and will further be ramped-up by holiday spending,” said Economic Planning Secretary Arsenio Balisacan.
“The growth registered in capital goods for September [40.7 percent], which is the highest for the year, is also an indication of robust economic activity moving forward,” Balisacan said.
Shipments of electronic products, which accounted for the 32.4 percent of total import bill, jumped 34.7 percent to $1.99 billion.
Meanwhile, strong imports and sluggish exports resulted in a trade deficit of $1.23 billion in September and $5.6 billion in the nine-month period. The National Economic and Development Authority said the increase in trade deficit was due to the 24.7-percent decline in merchandise exports during the month.
A trade deficit is also expected to have an impact on third-quarter gross domestic product growth, which will be released Thursday.
The PSA revised the second-quarter GDP growth figure to 5.8 percent from the previous estimate of 5.6 percent.
Balisacan said the statistics agencies revised the numbers on other services; trade and repair of motor vehicles, motorcycles, personal and household goods; and construction.
The second quarter expansion of 5.8 percent was slower than the 6.4 percent expansion recorded in the same period in 2014 and was below the government’s full-year target of 7 percent to 8 percent.