Manufacturing picks up in July

Manufacturing rose for the second straight month in July, the Philippine Statistics Authority (PSA) reported on Thursday morning.

Preliminary results of the PSA’s latest Monthly Integrated Survey of Selected Industries showed the volume of production index (VoPI) increased by 2.5% year on year in July from the revised 0.7% growth in June.

However, this was slower compared with the 534.4% growth in the same month a year ago.

This was the second straight month of growth since the revised 0.3% decline in May. Year to date, factory output rose by 24.1%.

The statistics agency said 14 out of 22 industry divisions contributed to the growth led by manufacture of fabricated metal products, except machinery and equipment with 30.3% in July, however, this is slower compared with the 45.8% growth reported in June.

This is followed by manufacture of machinery and equipment except electrical (29.1% in July), and manufacture of wood, bamboo, cane, rattan articles and related products (28.5%).

In comparison, S&P Philippines Manufacturing Purchasing Managers’ Index (PMI) slipped to 50.8 in July from 53.8 in June. A reading above 50 marks improvement for the manufacturing sector while anything below indicates deterioration.

The capacity utilization rate of these factories averaged 71.3% in July, a tad higher from 71.2% in June and 65.8% in the same month a year ago. All 22 sectors averaged a capacity utilization rate of at least 50%. — BTMG