Factory output in 2010 reverses yearago slump

Factory output in 2010 reverses yearago slump

by UA&P News Desk on February 28, 2011 - 11:32 am

from ABS CBN News, by Dionna Fe M. Falamig, BusinessWorld

MANILA, Philippines – Factory output growth slowed to a 12-month low in December last year, but the full-year result was a turnaround from 2009’s slump as economic growth sizzled to a 34-year high.

The National Statistics Office’s (NSO) Survey of Selected Industries (MISSI) showed manufacturing output, as measured by the volume of production index (VoPI), grew by an annual 13.3% in December.

For 2010, the index rose by 22.9% to 91.8 points, reversing the 11.9% contraction recorded a year earlier when the global economic downturn took its toll on the manufacturing sector.

The NSO traced the sector’s weak performance last December to sluggish food manufacturing, which at 2.7% was way lower than November’s 11.4% output growth.

Industry officials were, however, still upbeat.

“The growth was a result of the very abrupt catch-up in the manufacturing output of the electrical and automobile sectors,” said Donald G. Dee, vice-chairman and treasurer of the Philippine Chamber of Commerce and Industry.

“A 10% growth [in manufacturing] in 2011 is possible due to a growing demand of electronic products in the market,” Mr. Dee added.

Fourteen of the 20 major sectors covered by the survey reported increased production output with double-digit growth led by miscellaneous manufactures (48.5 %), electrical machinery (22.7 %), basic metals (21.2 %), textiles (17.5 %), machinery except electrical (16.9 %), petroleum products (11.4 %) and beverages (10.1 %).

Manufacturers of tobacco, chemical products, wood, leather, footwear and wearing apparel, meanwhile, reported lower production in December.

Factories already having completed their inventories could have affected the December result, but Cid L. Terosa, senior economist at the University of Asia and the Pacific (UA&P), pointed out that “the full-year result is significant because of the good performance of the economy in general last year.”

Read full story on ABS-CBNNews.com »

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