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The Philippine manufacturing sector registered slower growth in August 2024, according to preliminary data from the Philippine Statistics Authority
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The volume of production index August increased 2.8% but slower than the 6.8% growth in July 2024 and 5.6% in August 2023
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The average capacity utilization rate for the manufacturing sector in August was 75.5%, lower than the year-on-year rate of 75.7%
The Philippine manufacturing sector registered slower growth in both volume and value in August 2024, according to preliminary data from the Philippine Statistics Authority.
While the volume of production index (VoPI) in August 2024 increased 2.8%, it was slower than the 6.8% growth in July 2024 and 5.6% in August 2023, according to PSA’s latest Monthly Integrated Survey of Selected Industries (MISSI).
The value of production index (VaPI) likewise grew 1.8% in August 2024 albeit not as much as the increment of 6.4% in July 2024 and 6.1% in August 2023.
The latest indexes bring the average growth rate of VoPI and VaPI to 1.7% and 0.8%, respectively, from January to August.
The slowdown in the growth of VoPI was primarily driven by the slower growth in the manufacture of food products; computer, electronic, and optical products; and coke and refined petroleum products.
Thirteen other industry divisions posted annual increases while six industry divisions exhibited annual declines in August 2024.
The top three industry divisions contributing to the overall year-on-year growth rate of VoPI in August were the manufacture of coke and refined petroleum products; beverages; and computer, electronic and optical products.
For VaPI, the slowdown was also mainly attributed to the slower annual growth rate of the manufacture of food products; computer, electronic and optical products; and coke and refined petroleum products.
Of the remaining 19 industry divisions, eight exhibited annual declines while 11 industry divisions posted annual increases in August 2024.
Similar to VoPI, the top three industry divisions contributing to the overall year-on-year growth rate of VaPI in August were the manufacture of coke and refined petroleum products; beverages; and computer, electronic and optical products.
The value of net sales index for the manufacturing section registered an annual increase of 0.7% in August 2024, slower than its annual increment of 5% percent in July 2024 faster than the 0.2% growth in August 2023. The volume of net sales index also slowed down to 1.7% in August 2024 from 5.4% in July 2024, but slightly faster than the 1.4% growth in August 2023.
Based on MISSI’s responding establishments, the average capacity utilization rate for the manufacturing sector in August 2024 was reported at 75.5%, lower than the 75.7% capacity utilization rate in the previous month. In August 2023, the average capacity utilization rate was recorded at 74%.
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 textiles (82.2%), other non- metallic mineral products (82%), and machinery and equipment except electrical (82%).
