FACTORY output, both in terms of volume and in value, turned negative in November, the Philippine Statistics Authority (PSA) reported on Tuesday.
The volume of production (VoPI) and value of production (VaPI) indices respectively contracted by 3.9 percent and 4.2 percent, reversing from upticks of 0.3 percent and 0.7 percent a month earlier and the 2.1 percent for both a year ago.
Both indicators, however, remained positive year to date, but the VaPi was up by just 0.3 percent while VoPI grew by 1.1 percent.
The key driver of the November decline was said to be a slowdown in the manufacture of food products, which grew by just 1.5 percent compared to 7.1 percent increase in October.
“The manufacture of food products contributed 24.6 percent to the downtrend of VaPI for the manufacturing section in November 2024,” the PSA said.
The manufacture of transport equipment, whose growth slowed to 1.7 percent growth from October’s 10.3 percent, was also a factor behind November’s decline, it added.
Computer, electronic and optical products, which contracted by 2.6 percent after a 0.9-percent gain a month earlier, further weighed on the VaPI.
Of the remaining 19 industry divisions, seven recorded declines and the rest posted increases, the PSA said.
As for the VoPI, the November contraction was again primarily driven by the manufacture of food products, which fell by 0.8 percent after a 5.3-percent increase in October.
The manufacture of transport equipment, which declined by 0.4 percent following a 9.6-percent increase in the previous month, and a larger 5.6-percent drop in computer, electronic and optical product output from 1.2 percent in October, also weighed on the VoPI.
Seven of the remaining 19 industry divisions contracted while 12 gained.
Average capacity utilization, meanwhile, was slightly lower at 75.6 percent from 75.8 percent a month earlier and the 74.8 percent posted in November 2023.
“All industry divisions reported capacity utilization rates of more than 60.0 percent during the month,” the PSA said.
Over a quarter — 31.7 percent or 164 of the 517 establishments that participated in the PSA survey — said they operated at full capacity, defined as 90 to 100 percent.
Meanwhile, 44.9 percent (232 firms) said they ran at 70- to 89-percent capacity while 23.4 percent (121 firms) reported operating below 70 percent.
Be the first to comment