In August, the manufacturing sector of the Philippines experienced modest growth, primarily influenced by a decline in food product output, as reported by the Philippines Statistics Authority (PSA). The manufacturing value of production index marked an increase of 1.8% year-on-year for August, a notable deceleration from the 6.4% growth observed in July.
The slowdown in industrial output during August can be attributed, in part, to a mere 1% year-on-year gain in manufactured food products, significantly lower than the remarkable 14% rise recorded in the previous month. Amidst 22 industrial categories, 14 exhibited year-on-year output increases, while eight faced contractions.
The most substantial growth was noted in the electrical equipment segment, with an impressive rise of 26.7% year-on-year, and textiles, which surged by 27.8%. Conversely, the printing and reproduction of recorded media sector saw a significant decline, falling by 15.9% year-on-year. The overall volume of manufacturing production also saw an increase of 2.8% year-on-year in August, which represents a decrease from the 6.8% increase reported in July.
Additionally, the value of manufacturing net sales index in August saw a modest increase of 0.7% year-on-year. This slight rise in overall sales can be attributed to a slowdown in sales of computer, electronic, and optical products, as noted by the PSA. The volume of the manufacturing net sales index climbed by 1.7% year-on-year in August, a decrease from the 5.4% increase recorded in July. Furthermore, producer prices in the Philippines remained subdued during August, with the nation's Producer Price Index (PPI) reflecting a decrease of 1% year-on-year, alongside a year-to-date decline of 0.8%.
This information, shared by the PSA, highlights the current dynamics affecting the Philippine manufacturing landscape, where growth continues to be tempered by various economic factors..