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The Philippine manufacturing sector grew faster in both volume and value in July 2024, with more than half of the industry divisions recording annual growth during the period
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The volume of production in July 2024 grew 5.3% while the value of production increased by 4.7%
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The average capacity utilization rate for the manufacturing sector in July 2024 was reported at 75.6%, slightly up from 75.3% in the previous month
The Philippine manufacturing sector grew faster in both volume and value in July 2024, with more than half of the industry divisions recording annual growth during the period, according to preliminary data from the Philippine Statistics Authority (PSA).
The volume of production (VoPI) in July 2024 grew 5.3%, higher than the growth of 3.6% in June 2024 and 3.6% in July 2023. This brings the average growth rate of VoPI from January to July 2024 to 2.1%, according to PSA’s latest Monthly Integrated Survey of Selected Industries (MISSI).
The value of production (VaPI) likewise registered a faster annual increase at 4.7% in July 2024 from the hike of 3.3% in June 2024 and 3.5% in July 2023. For January to July 2024, the average growth rate of VaPI was at 1.3%.
Of the 22 industry divisions, the uptrend in VoPI in July was primarily driven by the faster annual increases in the manufacture of computer, electronic and optical products (12.5%); transport equipment (0.4%), and food products (14%).
Of the remaining 19 industry divisions, 11 exhibited annual increases while eight industry divisions posted annual declines in July 2024.
The top three industry divisions contributing to the overall year-on-year growth rate of VoPI in July were the manufacture of food products; computer, electronic and optical products; and coke and refined petroleum products.
Similar to VoPI, the acceleration for VaPI in July was mainly attributed to the growth in the manufacture of computer, electronic and optical products industry division (14.4%), transport equipment industry (2.9%) and food products (14.6%).
Similarly, 11 industry divisions exhibited annual increases in their VaPI while eight industry divisions posted annual declines in July 2024.
The top three industry divisions contributing to the overall year-on-year growth of VaPI in July were also the manufacture of food products; computer, electronic and optical products; and coke and refined petroleum products.
The volume of net sales index, meanwhile, rose 4.8% in July 2024 from an annual increase of 2.5% in June 2024, while the value of net sales index increased 4.3% in July 2024, faster than the 2.4% in June 2024.
Based on MISSI’s responding establishments, the average capacity utilization rate for manufacturing in July 2024 was reported at 75.6%, slightly up from 75.3% in the previous month.
All industry divisions reported capacity utilization rates of more than 60% during the month. The top three industry divisions in terms of reported capacity utilization rate were machinery and equipment except electrical (83.6%), other non-metallic mineral products (81.4%), and textiles (80.4%).
The proportion of establishments that operated at full capacity (90% to 100%) was 30.2% of the total number of responding establishments. Meanwhile, 41.4% operated at 70% to 89% capacity, and 28.4% operated below 70% capacity.
