PH factory output slips for 5th straight month
Credit to Author: ANNA LEAH E. GONZALES| Date: Tue, 04 Jun 2019 16:30:49 +0000
THE country’s factory output declined for the fifth consecutive month in April, data from the Philippine Statistics Authority (PSA) showed on Tuesday.
Results of the latest Monthly Integrated Survey of Selected Industries showed that the volume of production index (VoPI) in April plunged to -14.0 percent, worse than the -9.5 percent in March and a reversal of the 21.0 percent expansion in April 2018.
The latest figure continues the decrease in output that began with December 2018’s -9.1 percent.
The state-run statistics agency attributed the decline to production decreases in tobacco (-25.4 percent), petroleum (-25.1 percent) and leather products (-24.0 percent); food manufacturing (-23.9 percent); and basic metals (-23.0 percent).
The value of production index (VaPI), meanwhile, fell to -10.8 percent in the month from the -5.4 percent in March and reversing the record 21.8 percent growth a year ago.
It is also bigger than the -6.3 percent in February and the -8.8 percent in December 2018, and stands in contrast to the 1/ (less than 1) percent growth in January.
The declines posted in tobacco, leather and petroleum products; food manufacturing, furniture and fixtures, basic metals, and transport equipment pushed the volume down, PSA explained.
‘Expected to recover’
Despite the contraction, however, the National Economic and Development Authority (NEDA) said the sector was seen to bounce back.
In a statement also on Tuesday, Socioeconomic Planning Secretary Ernesto M. Pernia said that “[n]otwithstanding [the April figures], manufacturing output is expected to recover, supported by improved domestic demand in the coming months.”
“Easing inflationary pressures, accelerated government spending on infrastructure and a more upbeat consumer outlook also provide additional support, given expectations of additional income and availability of more jobs,” he added.
“A strong whole-of-government — nay, whole-of-society — approach is needed to accelerate the growth of manufacturing and boost its contribution to industry growth.”
“The needs of the food processing sector should be addressed, as it accounts for the largest share among all manufacturing subsectors. This points to the critical importance of agriculturem which, besides being the source of food, is also the feeder sector to the food manufacturing subsector.”
Pernia also cited the need to address the governance issues faced by the agribusiness sector and its related industries.
“The government may need to revisit existing interventions to ensure that they are designed to be responsive to the needs and actual behavior of farmers, [fishermen] and processors,” the NEDA chief said.
According to him, the delineation of responsibilities across various food-safety regulatory authorities should be clarified in order to improve the enforcement of regulations.
“It must be ensured that all food products, both for domestic market consumption and for export, are aligned with Good Agricultural Practices or Good Manufacturing Practices,” said Pernia.
He also said encouraging businesses to increase production was needed.
“Transacting with [the] government must be simplified and made less expensive, as mandated by [Republic Act] 11032 or the Ease of Doing Business and Efficient Government Service Delivery Act of 2018,” he added.
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