Factory output emerges from long 2-year slump

04/26/2008

After nearly a two-year slump featured by contractions and flat growth, local factory output managed a relatively strong 8.6 percent growth in February from a year ago, National Statistics Office (NSO) data released yesterday showed.

The growth in the volume of production index (VoPI) resulted from 13 of the 20 major sectors reporting increases in output with two-digit growth in petroleum products, leather products, beverages, footwear and wearing apparel, and wood and wood products, according to the NSO’s monthly integrated survey of selected industries.

The VoPI in February, compared to the previous month, however, still contracted but at a slower rate of 0.4 percent in February 2008 compared to a 13.7 percent decline in January 2008. 14 major sectors registered decline in production volume with two-digit decreases observed in the following: paper and paper products, electrical machinery, and tobacco products, the data showed.

Cost of manufacturing also grew during the period. The value of production index (VaPI) for the manufacturing industry registered a growth of 9.5 percent in February from a year ago, according to the MISSI.

“The growth may be attributed to the two-digit increases in seven major sectors led by petroleum products with 77.2 percent,” the NSO noted.

Other major sectors that recorded two-digit increments in value of production were leather products, beverages, footwear and wearing apparel, basic metals, wood and wood products, and rubber and plastic products, it said.

Sales volume also grew compared to a year ago by 11.1 percent in February, which the NSO attributed to increases reported by 13 major sectors, with two-digit increases in miscellaneous manufactures, petroleum products, beverages, tobacco products, machinery except electrical, leather products, furniture and fixtures, and wood and wood products.

Sales value during the month also grew by 11 percent with improved sales performance in the petroleum products, basic metals, beverages, tobacco products, leather products, and wood and wood products, according to NSO.

The NSO added average capacity utilization in February for the manufacturing sector was estimated at 80 percent.

Ten major sectors that registered more than 80 percent capacity utilization rates were basic metals, footwear and wearing apparel, leather products, food manufacturing, paper and paper products, miscellaneous manufactures, petroleum products, electrical machinery, chemical products (excluding plastic products) and rubber and plastic products.

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