[ad_1]
The country’s manufacturing output has improved to a single-digit contraction in August, according to the Philippine Statistics Authority (PSA).
Data from the Monthly Integrated Survey of Selected Industries (MISSI) showed that the Production Volume Index (VoPI) contracted 9.9 percent in August.
This is the first time that the VoPI contraction returned to single digits this year. In the last four months, the VoPI had registered contractions from 37.6 percent in April to 14.6 percent in July.
“The slower downtrend in VoPI for the sector was influenced by increases in the indices of two heavily weighted industry groups, namely chemicals [17.1 percent]and base metals [3.9 percent]”PSA said.
However, the value of production index (VaPI) has remained in double-digit contraction for the sixth consecutive month this year.
In August, the VaPI contracted 13.8 percent in 2020 from a contraction of 11.2 percent in 2019. The VaPI contracted 17.2 percent in July.
The deepest contractions of the VaPI this year were in April and May, when it registered falls of 40.1 percent and 30.1 percent, respectively.
“They contributed to the slower VaPI decline in August 2020 in chemicals and base metals with annual increases of 11.4 percent and 0.1 percent, respectively,” PSA said.
PSA data also showed
The average capacity utilization rate of the manufacturing sector continued to decline to 65.3 percent in August. Last year, the average capacity utilization rate was still at 84.3 percent.
National Statistician Claire Dennis S. Map told BusinessMirror that August’s average capacity utilization rate was the lowest in 18 years or since August 2002 when it posted a rate of 74.3 percent.
The country’s average capacity utilization rate began to slow in March, when it reached 76.5 percent from 84.6 percent in February.
“The impact of the 15-day Modified Enhanced Community Quarantine contributed to the decline in the average capacity utilization rate for full manufacturing in August 2020 [MECQ] in the National Capital Region, Bulacan, Cavite, Laguna and Rizal that began on August 4, 2020 ”, explained PSA.
The industry with the lowest average capacity utilization rate for August was petroleum products with 0.1 percent; chemical products, 50.7 percent; base metals, 58.3 percent; diverse manufactures, 61 percent; and tobacco products, 61.7 percent.
The data showed that seven of the 20 industry groups had at least an 80 percent average capacity utilization rate, led by machinery, except electrical, at 87.9 percent, followed by rubber and plastic products. with 84.7 percent, and printing with 84.4 percent.
