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Growth in the manufacturing sector slowed to double-digit increases in October 2021
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The sector booked growth in the triple digits in September
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14 of 22 industry divisions recorded improvement in volume and value, led by the manufacture of fabricated metal products
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The average capacity utilization rate was slightly higher at 67% from 66.6% in the previous month
The manufacturing sector recorded double-digit growth in October 2021, a slower pace from the previous month’s triple-digit hikes, based on latest data from the Philippine Statistics Authority (PSA).
The Volume of Production Index (VoPI) rose 24.7% in October 2021, much slower than the 123.1% increase registered in September 2021 but a reversal from the -25.4% drop in October 2020, according to PSA’s latest Monthly Integrated Survey of Selected Industries.
The Value of Production Index (VaPI) likewise continued to increase but at a slower rate of 24.8% in October 2021 compared with the three-digit annual rate of 122.5% in the previous month and in contrast with the -28.9% growth in October 2020.
VoPI and VaPI have been recording triple-digit increases since April 2021 but started to slow down in September 2021.
The increase in VoPI was brought about by positive growth rates in 14 of 22 industry divisions. Of these, the manufacture of fabricated metal products was the major contributor with a 176.6% growth. The remaining eight industry divisions recorded decreases, led by the manufacture of tobacco products with a 58.6% annual rate.
Increases in 14 of 22 industry divisions powered growth in VaPI for October 2021. The top contributor was manufacture of fabricated metal products except machinery and equipment with a 176.4% annual growth rate. Declines were reported in the other eight industry divisions with manufacture of tobacco products registering the fastest annual drop of -58.2 percent.
Based on the survey’s responding establishments, the average capacity utilization rate for the manufacturing sector in October 2021 was slightly higher at 67% from 66.6% in the previous month.
Twenty out of 22 industry divisions had more than 50% average capacity utilization rate, topped by manufacture of other non-metallic mineral products (81.1%), followed by manufacture of electrical equipment (77.3%), and manufacture of furniture (76.5%).
The proportion of establishments that operated at full capacity (90% to 100%) was 20.5% of the total number of responding establishments in October. Operating at 70% to 89% capacity were 37.4% of the establishments, and below 70% capacity, 42.1%.
