August food, electronic output slows to 4-month low

By Rose de la Cruz

The August output of food and electronic factories slowed to a 4-month low hitting 2.8 percent, the slowest since the 1.4 percent in April 2024, 6.8 percent in July and 5.6 percent in August 2023.

Data from the Philippine Statistics Authority said this posted a four-month low in August, according to the latest data from the Philippine Statistics Authority (PSA) “this brings the average growth rate of VoPI (volume of production) for manufacturing from January to August 2024 to 1.7 percent.” 

The PSA attributed the slowdown to the manufacture of food products, which posted VoPI growth of 0.6 percent from 13.1 percent in July; and a contraction of 0.4 percent in August 2023.

Another reason is the slower VoPI in the manufacture of computer, electronic and optical products at 4.2 percent in August 2024. In July, the VoPI of this commodity group grew 13.2 percent and a contraction of 3 percent in August 2023, reported Business Mirror.

The PSA also said the manufacture of coke and refined petroleum products posted annual growth of 15.5 percent, slower than the 20.4 percent posted in July 2024 and 47.5 percent in August 2023.

“Of the remaining 19 industry divisions, six exhibited annual declines during the period. 

Meanwhile, 13 industry divisions posted annual increases in August 2024,” PSA said.

The PSA said the average capacity utilization rate for the manufacturing section in August 2024 was reported at 75.5 percent.

This was the slowest since June when the average capacity utilization rate was at 75.3 percent. In July, the average capacity utilization rate was 75.7 percent and was at 74 percent in August 2023.

“Capacity utilization rate is the ratio of total output to the maximum rated capacity of the establishment,” PSA defined the average capacity utilization rate.

PSA said all industry divisions reported capacity utilization rates of more than 60 percent during the month.

The top three industry divisions in terms of reported capacity utilization rate were manufacture of textiles with 82.2 percent.

This was followed by the manufacture of other non-metallic mineral products at 82 percent; and the manufacture of machinery and equipment except electrical, at 82 percent.

The PSA also said the proportion of establishments that operated at full capacity or 90 percent to 100 percent was 28.9 percent of the total number of responding establishments.

Less than half of these establishments or 41.1 percent operated at 70 to 89 percent capacity and 30 percent operated below 70 percent capacity.