Imports jumped 16.8 percent in October from a year ago, on higher demand for raw materials and capital goods, the Philippine Statistics Authority said Tuesday.
Data from the PSA showed merchandise imports in October reached $6.52 billion, up from $5.59 billion recorded in the same month last year.
“The continuing resurgence of imports is a healthy indication of robust investment demand as it continues to be driven by intermediate and capital goods. The anticipated recovery of the global economy, and brisk election spending will continue to drive imports to double-digit growth,” said Economic Planning Secretary Arsenio Balisacan.
The growth in October shipments was faster than the 8.2-percent rise in September and represented the fifth straight month of increase this year.
The October figure also pushed up total imports in the first 10 months to $56.527 billion, or 3.9 percent higher than $54.392 billion in the same period in 2014.
The double-digit growth was supported by higher orders for raw materials and intermediate goods (up 40.1 percent), capital goods (25.4 percent) and consumer goods (4.1 percent).
Import payments for raw materials and intermediate goods, which accounted for 42.8 percent of the total merchandise imports, amounted to $2.8 billion in October.
The value of imported capital goods, which represented 32.3 percent of total merchandise imports, increased to $2.1 billion. Imports of capital goods have been expanding at double-digit rate since March 2015, which bodes well for overall investments growth in 2015.
“Increasing appetite for capital goods and manufactured goods, such as materials accounting for the manufacture of electrical equipment, signifies an upbeat business sector. This demonstrates the overall business confidence growth of 51.3 percent recorded in the fourth quarter this year from 41.4 percent in the previous quarter, as reported by the Bangko Sentral ng Pilipinas. This is the highest we had in the last two years,” said Balisacan
Electronic products, which accounted for the second largest portion of imports in October soared 70.7 percent to $2.099 billion in October from last year’s $1.299 billion. The increase was traced to the 85.4-percent expansion in semiconductors to $1.592 billion.
Import bill for consumer goods increased to $1.1 billion in October while payments for mineral fuels and lubricants declined 38.5 percent to $524.8 million because of lower petroleum prices.
“On the back of a weak global environment, the strong growth in shipments of capital goods and consumer goods points to a resilient domestic economy. Supportive policies for a thriving business sector should be continued. These include lowering the cost of and reducing the time for starting a business, reducing red tape and transaction costs, and supporting innovation and technological improvements, among others,” Balisacan said.
The strong imports and sluggish exports resulted in a trade deficit of $1.9 billion in October and $7.7 billion in the first 10 months, data showed.