Connect with us

Hi, what are you looking for?

Economy

Factory output slips again in December

The country’s manufacturing output continued to decline for the 10th straight month in December amid a coronavirus pandemic, the Philippine Statistics Authority (PSA) reported on Friday.

Preliminary results of the agency’s latest Monthly Integrated Survey of Selected Industries (MISSI) showed factory output, as measured by the volume of production index (VoPI), further declined by 2.8%, slower than the revised 8.6% drop in November and 7.3% decline a year earlier.

It was the softest decline in the 10 months since the government locked down many parts of the country to contain the pandemic.

This brought the average volume of production index to a contraction of 10.3% for 2020, worse than 8.4% drop in 2019.

The PSA traced the slower December decline to annual growth posted that month in five of 20 industry groups, namely paper and paper products (26.8%), chemical products (7.5%), electrical machinery (5.7%), food manufacturing (5.4%) and rubber and plastic products (4.9%).

Meanwhile, the value of production index (VaPI), a similar composite indicator in the survey, fell by 5.1% year on year in December from an 11.5% downturn in November. This was the 10th straight month for the contraction, though the slowest since January 2020.

The average value of production index shrank faster by 13.9% in 2020, worse than the 6.9% decline in 2019.
The average capacity utilization — the extent at which industry resources are used in producing goods — slipped to 72.8% in December from 75.6% in the previous month.

Only five of 20 industry groups posted at least 80% average use rate, namely machinery except electrical (88.3%), textiles (86.2%) and nonmetallic mineral products (82.7%).

The seasonal increase in spending and economic activities could have also helped the slower contraction in factory output in December, Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp. said in a note.

A possible easing in Metro Manila’s lockdown could help further reopen the economy, which may lead to a pickup in manufacturing activities, he said.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

WASHINGTON D.C. — The United States is seeking to form a coalition of countries to drive negotiations on a global plastic pollution treaty, weeks...

Economy

By Diego Gabriel C. Robles  THE WORLD BANK (WB) upgraded its growth forecast for the Philippines for this year and 2023, citing an “accommodative”...

Economy

THE PHILIPPINE auto industry’s sales recovery will likely be derailed if a measure reimposing excise taxes on pickup trucks is signed into law, according...

Economy

THE BANGKO SENTRAL ng Pilipinas (BSP) may deliver a second off-cycle rate hike in early November when the US Federal Reserve is expected to...

Economy

THE ASIAN Development Bank (ADB) is planning to allocate at least $14 billion for a program aimed at easing a food crisis in the...

Investing

With the reversal of the 1.25% rise in National Insurance Contributions happening on the 6th of November, employers across the nation have an opportunity...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Investing

The minute that any question pops into your head, you can simply ask Google. No longer do we have to pour over books and...

Investing

Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...

Economy

Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.