Factory output growth slows to 4.7%
MANILA, Philippines - The country's manufacturing output growth slowed to 4.7% in July, according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI) released on Friday, September 14.
This was due to the 6.8% contraction in the production of electrical machinery, including electrical appliances, wires and semiconductors - the country's top export item.
The survey, released by the National Statistics Office, cited other causes of the slowdown. These include the 0.9% decline in the produciton of chemical products and the 0.1% decline in the production of non-metallic products such as glass, cement and ceramics.
The NSO, meanwhile, said contributors to growth were furniture and fixtures (151% growth), leather products (97.4%), footwear and clothes (78.7%), and wood (25.8%).
Double-digit increases were also noted in the manufacture of transport equipment, beverages, textiles, fabricated metals, and food products.
Above 80% capacity
The NSO also reported that the total capacity utilization of the manufacturing industry was at 83.3%. Capacity utilization refers to the overall output of machines and human resources in manufacturing firms.
Preliminary MISSI data showed that 11 of the 20 major manufacturing sectors registered capacity utilization rates of 80% or more. The sectors that posted the highest average utilization rates of 88% and above were leather products and petroleum products.
The sectors that posted the lowest average capacity utilization of below 83% were chemical products, miscellaneous manufactures, and footwear and clothes.
"The proportion of establishments that operated at full capacity (90% to 100%) was 18.7% in June 2012. About 57.7% of the establishments operated at 70% to 89% capacity while 23.6% of the establishments operated below 70% capacity," the NSO said. - Rappler.com