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The Philippine manufacturing sector recorded declines in both volume and value in September 2024
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The value of production index for the manufacturing section dropped 7.6% while the volume of production index decreased 6.3%
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The downtrend in VaPI and VoPI was due mainly to declines in the manufacture of coke and refined petroleum products; beverages, and basic metals
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The average capacity utilization rate for the manufacturing section in September was reported at 75.3% from 75.4% in August
The Philippine manufacturing sector slipped in September year-on-year, according to preliminary data from the Philippine Statistics Authority (PSA).
The value of production index (VaPI) for the manufacturing section registered a year-on-year decrement of 7.6% in September 2024, in contrast from the 0.01% and 9.2% increase in August 2024 and September 2023, respectively, according to PSA’s latest Monthly Integrated Survey of Selected Industries (MISSI).
The volume of production index (VoPI) likewise dropped 6.3% year-on-year in September 2024 from a 1.2% and 9.5% growth in August 2024 and September 2023.
On a seasonally adjusted basis, VaPI declined at a monthly rate of 4.4% while VoPI fell 3.6% in September 2024.
The latest indexes bring the average growth rate of VaPI and VoPI from January to September 2024 to 0.03% and 1%, respectively.
The decline in VaPI in September 2024 was mainly due to the 15.6% drop in the manufacture of coke and refined petroleum products industry division, which contributed 31.9% to the downtrend of VaPI during the month.
Other primary contributors to the downtrend were the annual drops noted in the manufacture of the beverages industry division at 5.2%, and manufacture of basic metals at 34.2%.
The manufacture of coke and refined petroleum products, meanwhile, was also one of the top three industry divisions that contributed to the overall year-on-year growth rate of VaPI in September 2024, alongside the manufacture of basic metals, and other non-metallic mineral products.
Of the remaining 19 industry divisions, 11 posted increases while eight exhibited declines. The manufacture of electrical equipment posted the highest annual increment of 45% during the period.
The downtrend in VoPI was also primarily driven by the same three industry divisions that contributed to the decline of VaPI in September 2024. These were the manufacture of coke and refined petroleum products (down 12.8%); beverages (down 8.5%), and basic metals (down 35.1%).
Furthermore, seven out of the 19 remaining industry divisions exhibited declines while 12 industry divisions posted annual increases in September 2024.
The top three industry divisions contributing to the overall year-on-year growth rate of VoPI in September 2024 were the manufacture of basic metals; coke and refined petroleum products; and beverages.
The value of net sales index in September 2024 registered a year-on-year decrement of 5.5% from a 0.2% growth in August 2024, while the volume of net sales index fell 4.1% in September 2024 from a 1.4% hike in August 2024.
Based on responding MISSI’s establishments, the average capacity utilization rate for the manufacturing sector in September 2024 was reported at 75.3% from the 75.4% in August.
All industry divisions reported capacity utilization rates of more than 60% during the month, with the machinery and equipment (except electrical), repair and installation of machinery and equipment, and furniture having the highest capacity utilization rate during the period.
