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Philippine manufacturing sector continued to contract in both volume and value for the ninth consecutive month in November 2020
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Volume of Production Index in November dropped 10.8% while Value of Production Index fell 13.8%, both drops faster than the recorded declines in October 2020
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The contraction was due to decline in more than 15 industry groups, led by petroleum products, tobacco, and printing
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Average capacity utilization rate by manufacturers in November 2020 slowed slightly to 70.9% from 71.8% in the previous month
The Philippine manufacturing sector continued to contract in both volume and value for the ninth consecutive month in November 2020, the fall led by double-digit declines in petroleum products, tobacco, and printing.
The Volume of Production Index (VoPI) dropped 10.8% in November 2020, faster than the 9.3% decline in October 2020, according to the Philippine Statistics Authority’s (PSA) latest Monthly Integrated Survey of Selected Industries.
The downtrend in VoPI was influenced by the two-digit decrements in the indices of 16 industry groups led by petroleum products (-61.9%), tobacco products (-58.6%) and printing (-51.5%).
The Value of Production Index (VaPI) likewise posted a downturn of 13.8% in November 2020, faster than the decrease in the previous month of 12.3%.
Contributory to the faster annual decline of VaPI were the decreases in the indices of 17 industry groups. Among these industry groups, the top three were petroleum products (-66.0%), tobacco products (-56.9%) and printing (-50.8%).
Based on responding establishments, the average capacity utilization rate for the manufacturing sector in November 2020 was 70.9%, down from 71.8% in the previous month.
Six of the 20 industry groups had at least 80% average capacity utilization rate. These groups were led by machinery except electrical (91.7%), followed by electrical machinery (85.4%), and furniture and fixtures (84.4%).
The proportion of establishments that operated at full capacity (90% to 100%) was 20.1% of the total number of responding establishments. More than 45% operated at 70% to 89% capacity, while 34.3% operated below 70% capacity.
