[ad_1]
The country’s manufacturing output, both in volume and value, continued to decline in September, but at a slower pace, according to the Philippine Statistics Authority (PSA).
Results from Thursday’s latest Integrated Monthly Survey of Selected Industries showed the country’s production volume index (VoPi) contracted 8.4 percent on the month, slower than the 9.0 percent in August but faster than 6.5 percent in the same month last year.
The main contributors to the slower decline were annual expansions in base metal indices by 14.4 percent, food manufacturing by 10.2 percent, chemicals by 8.1 percent, and miscellaneous manufacturing by 4.6 percent.
The production value index (VaPi) also fell by 11.9 percent, slower than the 13.3 percent decline in August, but faster than the 6.5 percent decline in September 2019.
The slower decline was attributed to year-on-year increases in base metal indices by 12.3 percent, food manufacturing by 11.6 percent, chemicals by 5.6 percent, and miscellaneous manufacturing. by 1.6 percent.
Commenting on the data, ING Bank Manila senior economist Nicholas Mapa told The Manila Times that despite the slower decline in production, he was not optimistic about the recovery for the rest of the year.
“We have noticed that [the manufacturing] The PMI (Purchasing Managers Index) for October returned to [a] contraction after a brief month of expansion, so we are not particularly optimistic that both VoPi and VaPi will rebound in the short term, ”he said.
Earlier this week, IHS Markit reported that the country’s PMI fell to 48.5 in October from 50.1 in September. Readings greater than 50 indicate expansion; below that, a contraction.
“The economy remains in recession despite recent efforts to reopen the economy and we forecast a contraction in GDP (gross domestic product) through early 2021,” said Mapa.
The Philippines plunged into a technical recession after domestic production fell by a record 16.5 percent in the second quarter and 0.7 percent in the first. This brought the economic contraction to 9 percent in the first six months of 2020.
The government will release official third-quarter GDP growth data on November 11.
[ad_2]