Manufacturing grew by double digits in 2016
Manufacturing output posted double-digit growth in December 2016 and full-year 2016 due to increase in production of petroleum products, food manufactures, and transport equipment, according to the National Economic and Development Authority (NEDA) Friday.
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 five percent in the same period in 2015.
The Value of Production Index for manufacturing grew by 19.4 percent, from the 2.7 percent decline recorded in December 2015.
As a result, full-year VoPI for manufacturing grew 14.4 percent for year 2016 from 2.5 percent growth recorded in 2015.
“ 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 Pernia.
Transport equipment recorded growth in production volume and value of 34.3 percent and 35.6 percent, respectively in December 2016.
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, the highest production volume growth recorded since 2013. 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.
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.
Notwithstanding the impressive performance of the manufacturing sector, 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. DMS
