MANILA – Philippine manufacturing output continued to expand in August:Philippine manufacturing output continued to expand in August, albeit at a slower pace compared to July, according to the Philippine Statistics Authority (PSA). The Monthly Integrated Survey of Selected Industries revealed that both the value and volume of production indices grew less robustly during the month.
According to Philippines News Agency, the PSA reported that the value of production index (VaPI) saw a modest increase of 1.8 percent in August, a significant deceleration from the 6.4 percent growth recorded in July and the 6.1 percent growth in the same month last year. The slowdown was primarily due to a marked decrease in the annual growth rate of the food products manufacturing division, which grew by only 1.0 percent compared to a 14.0 percent increase in July.
The report also highlighted that other sectors contributed to the deceleration in VaPI. Notably, the annual growth rates in the manufacture of computer, electronic an
d optical products slowed to 5.1 percent from 15.2 percent in July, while the coke and refined petroleum products sector expanded by 11.6 percent, down from 19.1 percent the previous month.
Similarly, the volume of production index (VoPI) increased by 2.8 percent, a slowdown from 6.8 percent in July and 5.6 percent in August of the previous year. The slower growth in VoPI was also influenced by the reduced pace of increase in the same key industrial divisions affecting the VaPI.
The PSA additionally noted a slight decrease in the average capacity utilization rate across the manufacturing sector, which stood at 75.5 percent, slightly lower than the 75.7 percent observed in July. In comparison, August 2023 recorded a capacity utilization rate of 74 percent. Despite the overall decrease, all industry divisions reported capacity utilization rates above 60 percent. The highest rates were in the manufacture of textiles (82.2 percent), other non-metallic mineral products (82 percent), and machinery and equipment e
xcept electrical (82 percent).