Factory production up 25% in November 

The country’s manufacturing output continued to improve but only minimally in November as base effects start to fade, the Philippine Statistics Authority (PSA) said in a report by Philippine Star.

Factory output, as measured by the Volume of Production Index (VoPI), went up by 25.3 percent in November last year, just slightly above the 25.2 percent a month earlier, but still better than the 21.8 percent contraction in November 2020.  

The PSA attributed the upturn in VoPI to the growth of 12 industry divisions led by the manufacture of coke and refined petroleum products, which went up 84.8 percent in November 2021.  However, this was  slower than the 125 percent increase the month before.

Manufacturing has been expanding over the past months, but the huge gains have dwindled since October as the low base effects fade.

The economy opened up during the same period in 2020 following declining COVID cases.

In November 2021, the pandemic alert level was downgraded, allowing more firms to resume their operations.

Twelve out of the 22 industry groups covered by the index registered growth during the month, led by the manufacture of coke and refined petroleum products, which grew 84.8 percent.

The manufacture of wood, bamboo, cane, rattan articles and related products also grew significantly at 83.9 percent.

Most industry groups posted double-digit increases including computer, electronic and optical products (43 percent), electrical equipment (45 percent), non-metallic mineral products (50 percent), food products (20 percent), furniture (18 percent), machinery and equipment (41 percent) and fabricated metal products (38 percent).

Other gainers also include basic metals, printing and reproduction of recorded media and leather products.

Contractions, meanwhile, were also recorded, led by tobacco products at 20.4 percent.

Declines  were recorded in basic pharmaceutical products and preparations, transport equipment, rubber and plastic products, chemical products, beverages, wearing apparel, paper and paper products, and textiles.

The growth of the Value of Production Index (VaPI) likewise inched up to 26.5 percent in November from 25.9 percent in October. But it contracted  to 25.4 percent compared to the same period last year.

Capacity utilization on the average slightly rose to 67.4 percent from 67.2 percent as restrictions were eased during the month.

Twenty of the 22 industry groups had at least 50 percent average capacity utilization rate, led by the manufacture of furniture, other non-metallic mineral products, and tobacco products.

Just over a quarter or 26 percent of responding establishments operated at full capacity during the survey period.