FACTORY output growth in March slowed due to the tepid performance of a number of industry divisions, including the manufacture of beverages, according to the latest data from the Philippine Statistics Authority (PSA).
In a report it published on Tuesday, the PSA said the volume of production index (VoPI) registered a year-on-year increase of 2.2 percent in March, but slower than the February annual growth of 5.2 percent.
“The slower annual growth of VoPI in March 2023 was mainly brought about by the lower annual rates in the same top three industry divisions that contributed to the slower growth of VaPI [Value of Production Index] during the period,” the PSA said.
These three industry divisions are the manufacture of beverages (4.9 percent in March from 20.9 percent in February), manufacture of chemical and chemical products (-25.5 percent, from -7.8 percent), and manufacture of basic metals (18.6 percent, from 28.1 percent).
Like VaPI, the statistics agency said 11 out of the remaining 19 industry divisions posted negative annual growth rates in March.
“The highest annual decline was led by manufacture of wearing apparel registering an annual downturn of -40.2 percent,” it added.
In contrast, 8 industry divisions posted year-on-year increases during the period. The highest annual upturn was led by manufacture of transport equipment recording an annual increment of 25.3 percent.
The VoPI for manufacture of food products registered an annual increment of 0.4 percent in March. PSA said this was slower compared with its annual growth rates in February at 1.4 percent and March 2022 at 0.7 percent.
“The slower increase in the annual growth of VoPI for manufacture of food products in March 2023 was primarily contributed by the annual decline in manufacture of dairy products industry group with -0.5 percent from 15.3 percent annual increase in the previous month,” the PSA said.
“Other primary contributors to the slowdown in the year-on-year growth of VaPI for manufacture of food products were manufacture of other food products exhibiting faster annual decline of -8.4 percent during the period from -4.9 percent in February 2023; and processing and preserving of meat posting lower annual increment of 5.4 percent in March 2023 from 9.6 percent in the previous month,” it added.
Based on responding establishments, PSA said the average capacity utilization rate for the manufacturing sector in March reached 73 percent from 72.7 percent in February.
“All industry divisions reported capacity utilization rates of more than 50 percent during the month,” the PSA said.
The top 3 industry divisions in terms of reported capacity utilization rate were manufacture of machinery and equipment except electrical (82 percent), manufacture of transport equipment (81.8 percent), and manufacture of rubber and plastic products (77.6 percent).
The proportion of establishments that operated at full capacity (90 percent to 100 percent) was 21.7 percent of the total number of responding establishments. Meanwhile, 38 percent operated at 70 to 89 percent capacity, while 40.3 percent operated below 70 percent capacity.