Manufacturing Industry Sees Recovery in Output

The Department of Trade and Industry – Board of Investments (DTI-BOI) announced that the manufacturing output has increased in May this year.

“This point toward industry stabilization as manufacturing output sees an upside in the months ahead with the ongoing rollout of the vaccination program and ease of quarantines,” DTI-BOI said in a press release.

In a PSA report, factory output registered a 162.1% growth year-on-year (YoY) for April 2021 in its monthly integrated survey of selected industries (MISSI) report in the volume of production index (VoPI). A huge improvement compared to March (73.3%) and April (64.8%).

Meanwhile, in an IHS Markit report, the country has recorded a 49.9 purchasing managers’ index (PMI) in May 2021, this an increase compared to April in the same year.

DTI Secretary and BOI Chairperson Ramon M. Lopez said that this improvement shows that the manufacturing sector is shifting towards stability while businesses resume their operations.

“We welcome these encouraging developments. Our capacity utilization inched up to 63.6% in April from 63% the previous month. This shows a huge increase and we see a continuing increase in the months ahead,” Lopez said.

Lopez also pointed out the easing of quarantine restrictions this year which helped reopen the economy.

“This was because of the more permissive quarantine restrictions we implemented this year as we gradually reopen the economy. Even under the Enhanced Community Quarantine (ECQ) in March and Modified ECQ (MECQ) in April of this year, there was a higher operating capacity for manufacturing and exports. Despite the restrictions, we kept the economy moving and limited the lockdowns to the non-essential sectors.” Lopez said.

Lopez hopes that the increase in manufacturing output will maintain as businesses slowly reopen, now that the vaccine rollout has expanded to the A4 priority group.

“We hope to sustain the increase of production capacity as we keep the process of a calibrated and safe reopening of businesses, especially now that the vaccine rollout is accelerating its pace with more vaccines coming this month. And with the expanded definition of the A4 priority group, the vaccination of our workers will keep the economy running,” Lopez said. (ASC)