[ad_1]
The country’s manufacturing output posted its fifth consecutive month of decline this year, according to the Philippine Statistics Authority (PSA).
According to the results of the Monthly Integrated Survey of Selected Industries (MISSI), PSA said that the Production Volume Index (VoPI) contracted 11.9 percent in July 2020.
The VoPI contraction in July was an improvement compared to the last three months when it registered contractions of 12.5 percent in June; 24.5 percent in May; and 38.8 percent in April.
“Although manufacturing is not yet in positive territory, the trends in the volume and value of production in the last three months indicate an improvement in the trajectory of economic activity. This momentum suggests a gradual recovery in demand in the coming months until the end of the year, ”said Acting Secretary for Socioeconomic Planning, Karl Kendrick T. Chua, on Friday.
Neda said the country’s manufacturing performance will remain subdued in the short term as companies expect the pandemic to have a prolonged impact on production.
To help encourage the resumption of business operations, Neda said the government will continue to enforce minimum health standards, which include the use of masks and face shields and adherence to strict social distancing protocols.
“Maintaining the gradual and calibrated opening of the economy depends largely on the level of community quarantine that would allow businesses to operate and allow workers to stay on the move. To make this possible, a safe and sufficient availability of public transport can be supported with subsidies from service contracts if necessary, ”said Chua.
Production value
The value of production index (VaPI) contracted 14.8 percent year-on-year. This marked the fifth consecutive month of double-digit contraction this year.
The VaPI contracted the most in April with 41.3 percent, followed by May with 27.3 percent. July’s VaPI growth was even lower than the 12.7 percent contraction in March.
The PSA reported that the average capacity utilization rate for manufacturing decreased slightly in July 2020.
Based on facilities responding with capacity utilization responses, the average capacity utilization rate for manufacturing in July 2020 decreased slightly to 75.4 percent from 75.8 percent in the previous month.
Seven of the 20 industry groups had at least an 80 percent average capacity utilization rate. The groups were led by machinery except electrical with 86.5 percent, followed by printing with 83.3 percent; and textiles, 82.2 percent.
“Nearly a fifth of the responding establishments were operating at full capacity,” PSA said.
The proportion of facilities operating at full capacity (90 percent to 100 percent) was 17.3 percent of the total number of facilities that responded with responses on capacity utilization.
More than two-fifths or 46 percent operated between 70 and 89 percent of their capacity, and more than a third or 36.7 percent operated below 70 percent of their capacity.
MISSI is a report that monitors production, net sales, inventories and capacity utilization of selected manufacturing establishments to provide flash indicators on the performance of the manufacturing sector.
