FACTORY output growth remained positive in August but was markedly slower compared to the previous month and a year earlier, the Philippine Statistics Authority (PSA) reported on Tuesday.
The Value of Production Index (VaPI) came in at 1.8 percent, down from 6.4 percent in July and 6.1 percent a year ago, while the Volume of Production Index (VoPI) also decelerated to 2.8 percent from 6.8 percent and 5.8 percent a month and a year earlier, respectively.
Year to date, VaPi was up 0.8 percent and VoPI by 1.7 percent.
The VaPI result, the PSA said, was mainly due to slower annual growth in the manufacture of food products of 1.0 percent, substantially lower compared to July’s 14.0 percent.
“The manufacture of food products contributed 41.3 percent to the deceleration in the annual rate of VaPI for the manufacturing sector in August 2024,” the agency noted.
It also had the highest weight among 22 industry divisions in the computation of the VaPI.
Computer, electronic and optical products manufacturing, which saw growth slow to 5.1 percent from 11.6 percent, and coke and refined petroleum products manufacturing (11.6 percent from 19.1 percent), also contributed to the VaPI slowdown.
Of the remaining 19 industry divisions, eight posted declines and the rest posted increases, the PSA said.
The manufacture of textiles recorded the fastest growth of 27.8 percent, surging from 15.7 percent in July, while printing and reproduction of recorded media posted contracted by a faster 15.9 percent from 11.6 percent a month earlier.
As for the VoPI, August’s decline was driven by slower increases the same three industries that contributed to the VaPI slowdown: food products (0.6 percent from 13.1 percent); computer, electronic and optical products (4.2 percent from 13.2 percent); and coke and refined petroleum products (15.5 percent from 20.4 percent).
Six of the remaining 19 industry divisions declined and 13 gained.
Textiles again grew the most, by 30.3 percent from 17.9 percent a month earlier, and printing and reproduction was still the biggest loser, down 19.1 percent from 14.6 percent in July.
Average capacity utilization, meanwhile, was slightly lower at 75.5 percent from 75.7 percent a month earlier.
“All industry divisions reported capacity utilization rates of more than 60.0 percent during the month,” the PSA said.
Over a quarter — 28.9 percent or 176 of the 609 establishments that participated in the PSA survey — said they operated at full capacity, defined as 90 to 100 percent.
Meanwhile, 41.1 percent (250 firms) said they operated at 70- to 89-percent capacity, while 30.0 percent (183 firms) reported operating below 70 percent.
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