Manufacturing sector recovers from 3-month drop in August

MANILA, Oct. 9 (PNA) — After a three-month decline, the manufacturing sector bounced back in August 2015 due to the vigorous construction activity and high demand for automotive products, according to the National Economic and Development Authority (NEDA).

In the Philippine Statistics Authority’s Monthly Integrated Survey of Selected Industries for August 2015, the manufacturing sector’s Volume of Production Index (VoPI) increased by 3.7 percent, a big improvement from its performance in the past three months.

However, it remains behind the 5.7-percent growth it posted in the same month last year.

“We must continuously drive domestic demand to offset the low global demand and strengthen the link between the agriculture and manufacturing sectors to reduce the economy’s vulnerability to external supply shocks,” said Economic Planning Secretary Arsenio M. Balisacan.

Meanwhile, the Value of Production Index (VaPI) declined by 4.6 percent.

For consumer goods, manufacture of beverages is leading in the growth in value of net sales, as it posted a 19.1-percent growth in August. Tobacco also posted a double-digit growth in both value and volume of net sales.

For intermediate goods, wood posted a double-digit growth of 37.9 and 11.8 percent in volume and value of net sales.

“We remain optimistic for the fourth quarter due to the expected boost in both production and sales of manufactured goods with the coming holiday season, campaign season for the 2016 elections, and the expansion of the BPO industry,” Balisacan said. (PNA)