Elevated inflation and higher interest rates resulted in a slower growth of the manufacturing sector in March.
Latest data from the Philippine Statistics Authority showed that the volume of production index registered a year-on-year increase of 2.2 percent in March, slower than the February growth of 5.2 percent. In March 2022, VoPI surged 346.2 percent.
“The slower annual growth of VoPI in March 2023 was mainly brought about by the lower annual rates in the same top three industry divisions that contributed to the slower growth of VaPI [value of production index] during the period,” the PSA said.
These were the manufacture of beverages, with 4.9 percent in March from 20.9 percent in February; manufacture of chemical and chemical products, -25.5 percent from -7.8 percent in the past month; and manufacture of basic metals, 18.6 percent from 28.1 percent in February 2023,” the PSA said.
It said 11 of the remaining 19 industry divisions posted lower production in March, with wearing apparel registering an annual downturn of -40.2 percent.