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The Philippine manufacturing sector maintained its growth, recording its fifth consecutive month of three-digit increases in August 2021
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The Volume of Production Index grew 534.6% while the Value of Production Index increased 523.3%
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Of the 22 industry divisions, 16 recorded increases in volume and 14 in value, both led by manufacture of coke and refined petroleum products
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The average capacity utilization rate for the manufacturing sector in August 2021 dropped to 66.1% from 66.8% in the previous month
The Philippine manufacturing sector maintained its growth, recording its fifth consecutive month of three-digit increases in August 2021, data from the Philippine Statistics Authority (PSA) showed.
The Volume of Production Index (VoPI) in August 2021 grew 534.6%, slightly slower than the 539.7% growth in July 2021 but reversing the -82.2% decline in August 2020, based on PSA’s latest Monthly Integrated Survey of Selected Industries.
Notably though, the manufacturing sector in August 2020 was adversely affected by COVID-19-related restrictions in the country that started in March 2020 and pulled down production and sales indices for the sector.
The increment in VoPI for August 2021 was due to the positive growth of 16 industry divisions, with fastest growth reported in the manufacture of coke and refined petroleum products at 3,800.9%. On the other hand, six industry divisions recorded decrements, with manufacture of tobacco products registering the fastest annual decline of -53.8%.
The Value of Production (VaPI) likewise registered an increase of 523.3% in August 2021. PSA noted this was the second-highest annual growth rate in the 2018-based data series of VaPI after hitting its highest annual increase in the previous month at 528.7%. In contrast, the VaPI in August 2020 dropped by -83.1%.
The significant expansion in VaPI in August 2021 was due to increases in 14 out of 22 industry divisions. The fastest growth rate was reported in manufacture of coke and refined petroleum products at 4,388.7%. The remaining eight industry divisions recorded decreases, with manufacture of tobacco products registering the fastest annual decline of -53.8%.
Based on the survey’s responding establishments, the average capacity utilization rate for the manufacturing sector in August 2021 dropped to 66.1% from 66.8% in the previous month.
There were 19 out of 22 industry divisions with more than 50% average capacity utilization rate, led by manufacture of furniture (83.1%), manufacture of tobacco products (81.6%), and manufacture of other non-metallic mineral products (79.3%).
More than one-fifth or 22.2% of the responding establishments operated at full capacity (90% to 100%). Meanwhile, 36.6% operated at 70% to 89% capacity, while 41.2% operated below 70% capacity.
