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By ADRIAN STEWART CO
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Monday, February 20, 2017
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MANILA – The National Economic and Development Authority (NEDA) said the manufacturing output had double-digit increase in both December 2016 and full-year 2016.
The double-digit growth for the mentioned period could be widely credited to the increase in production of petroleum products, food manufactures, and transport equipment.
Based on the Philippine Statistics Authority’s Monthly Integrated Survey of Selected Industries (MISSI) for December 2016, the Volume of Production Index (VoPI) for manufacturing increased to 23 percent from 5 percent in the same period in 2015.
The Value of Production Index for manufacturing has likewise grew by 19.4 percent, from the 2.7 percent decline recorded in December 2015 which resulted in a full-year VoPI for manufacturing grew 14.4 percent for year 2016 from 2.5 percent growth.
“The manufacturing sector is performing very well. Increases in the purchases of capital and durable goods contributed to the increase and further indicates that there is business and consumer confidence in the domestic economy,” said Socioeconomic Planning Secretary Ernesto M. Pernia.
According to Pernia, transport equipment recorded growth in production volume and value of 34.3 percent and 35.6 percent, respectively in December 2016.
Meanwhile, construction-related manufactures sustained the upward trend, primarily in response to the increase in demand for both residential (19.2 percent) and non-residential buildings (27.3 percent) during the third quarter of 2016.
For December 2016, food manufacturing grew 35.1 percent. Value of production of the food subsector also increased by 37.7 percent, driven mainly by domestic demand during the holiday season and higher production value of vegetable oil and animal fats.
Moreover, for intermediate goods, the petroleum subsector has been sustaining its growth, posting a production volume growth of 63.2 percent for December 2016. This is a complete reversal from the 34.2 percent decline in 2015.
Despite the positive results, Pernia believes that much can still be done to realize its potential to provide quality and stable jobs. The proposed Philippine Development Plan 2017-2022 enumerates strategies to boost the manufacturing sector.
“We must further encourage the expansion of the capacity of existing firms, entry of new ones and facilitate linkages across firms and sectors. The use of science, technology and innovation must also be promoted. We must also enhance the competencies of our labor force to produce high-quality and competitive products,” he said./PN
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