(CNN Philippines) — The country’s manufacturing sector rebounded on March this year after two consecutive months in the doldrums, according to data from the Philippine Statistics Authority (PSA).
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On a year-on-year basis, the volume of production index (VoPI) registered a double-digit growth of 13.6%, while the value of production index (VaPI) rebounded to 7.4%.
Tobacco products, basic metals, and petroleum product ors where the biggest gainers in the VaPI, with respective gains of 84.7%, 63%, and 60%.
At the other end of the spectrum are furniture and fixtures (-19.1%), footwear and wearing apparel (-18.8%), and wood and wood products (-18.7%).
In a statement, Economic Planning Secretary Arsenio Balisacan, director-general of the National Economic Development Authority (NDEA), said:
“This rebound in March suggests a promising first quarter manufacturing performance. The Philippine business sector maintains expectations of favorable performance in the near term and growth drivers in the past year are expected to perform positively in the next period.”
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Likewise, capacity utilization — the relationship between the actual output produced and potential production capacity — rose 83.5%. The figure is higher than the 83.1% registered in the first three months of last year, and 2014’s full year average of 83.4%.
The PSA also revealed that half of the country’s major industries operated 80% and above capacity utilization rates.
“The rise in average utilization levels this month may be a result of increased activity in manufacturing and construction,” Balisacan noted.
The government official maintains an optimistic outlook with the country’s manufacturing sector.
“Robust private consumption fueled by continued inflow of remittances will thrive in the current low inflation environment. The low global oil prices sustaining low inflation as well as Philippine business optimism will drive businesses to capitalize on low cost of production.”
However, he believes that the industry still has a lot of room to grow: “Diversification of products and market is vital to maintain our presence globally amidst the low demand from the country’s major trading partners.”
