Factory output in August up 22.1% PDF Print E-mail
Friday, 29 October 2010 14:36

Output from Philippine factories continued to expand by double digits in August as manufacturers' ramp up capacity, the government reported Tuesday.

The National Statistics Office (NSO) said the factory output rose 25.6 percent year-on-year in August, from the revised 22.1-percent drop in July.

A year ago, factory output contracted by 13.3 percent.

The agency said 12 of 16 major sectors recorded two-digit growth in production output.

These were machinery except electrical, petroleum products, electrical machinery, transport equipment, miscellaneous manufactures, basic metals, beverages, fabricated metal products, leather products, non-metallic mineral products, rubber and plastic products and paper and paper products.

The losers, on the other hand, include tobacco products, footwear and wearing apparel and furniture and fixtures.

On a monthly basis, volume of production index (VoPI), went up by 2.3 percent in August.

The NSO said 16.6 percent of the 100 manufacturing firms surveyed operated at full capacity in August.

The average capacity utilization of these factories stood at 83.3 percent.

The NSO said sectors that posted more than 80-percent capacity utilization rates were basic metals, electrical machinery, petroleum products, machinery except electrical, non-metallic mineral products, paper and paper products, food manufacturing, miscellaneous manufactures, chemical products, rubber and plastic products and leather products.

More than half or 61.8 percent of the establishments operated at 70 to 89-percent capacity and 21.6 percent of the establishments operated below 70-percent capacity.

The NSO said the value of production index (VAPI) expanded by 16.2 percent year-on-year in August from 15.4 percent in July.

NSO attributed the increase to the 13 major sectors with two-digit increment in production values, which include petroleum products, transport equipment, leather products, miscellaneous manufactures, beverages, electrical machinery, machinery except electrical, basic metal, fabricated metal products, rubber and plastic products, non-metallic mineral products, paper and paper products and publishing and printing.

On a monthly basis, VaPI remained its positive growth with an increase of 1.4 percent in August 2010.

The value of net sales in August increased at a slower rate of 10.7 percent, while on a monthly basis it dropped by 2.2 percent.