MANUFACTURING output slowed in June, the Philippine Statistics Authority (PSA) reported on Wednesday, with the Value of Production Index (VaPI) easing to 2.2 percent, and the Volume of Production Index (VoPI) went down by 2.5 percent.
Both indices dropped from a month earlier, when growth was 2.3 percent and 3.2 percent, respectively. VaPI was also higher a year earlier at 2.7 percent but VoPI was lower at 2.1 percent.
Year to date, both indices remained positive at 0.3 percent and 1.3 percent, respectively.
The slower VaPI growth, the PSA said in a statement, was mainly due to a larger contraction in the manufacture of basic metals to 17.5 percent from 3.1 percent in May.
“The manufacture of basic metals contributed 28.5 percent to the downtrend of VaPI for the manufacturing section in June 2024,” the PSA said.
It also had the fifth-highest weight among 22 industry divisions covered by the VaPI.
Also weighing on growth were transport equipment manufacturing, which fell by 6.2 percent after gaining 0.4 percent in May, and a slowdown in coke and refined petroleum production to 44.5 percent from 51.0 percent.
Thirteen out of 19 remaining industries recorded gains during the month while six posted contracted.
As for the VoPI, June’s slowdown was also traced to the manufacture of basic metals, which contracted by 17.7 percent from 2.8-percent growth in May.
Transport equipment output recorded a steeper 8.8-percent contraction from 1.2 percent a month earlier while the manufacture of coke and refined petroleum saw growth slow to 46.0 percent from 52.7 percent.
Eleven of the remaining 19 divisions gained while eight declined.
Average capacity utilization, meanwhile, slightly fell to 75.3 percent from 75.6 percent in May.
“All industry divisions reported capacity utilization rates of more than 60.0 percent during the month,” the PSA said.
Over a quarter — 30.3 percent or 171 of the 565 establishments that participated in the PSA survey — said they operated at full capacity, defined as 90 to 100 percent.
Meanwhile, 38.2 percent (216 firms) said they operated at 70- to 89-percent while 31.5 percent (178 firms) reported operating below 70 percent.
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