Philippine factory output soars 162.1% in April

Factory output recorded a 162.1% growth in April due to low-base effects even with the closure of an oil refinery that dampened domestic manufacturers’ total production volume.

The Philippine Statistics Authority’s (PSA) monthly integrated survey of selected industries report for April showed the jump in the volume of production index (VoPI)—a proxy for factory output—reversed the 73.3% drop in March as well as the 64.8% decline in April 2020.

The PSA said 20 of the 22 manufacturing sectors posted year-on-year increases in production volume, including the fastest growth of 687.5% in the manufacture of basic metals. Many manufacturing activities stopped in mid-March to May 2020 at the height of the most stringent COVID-19 lockdown in the region.

Only two industries had year-on-year declines in production volumes: manufacture of refined petroleum products fell 32.3%, while the manufacture of basic pharmaceutical products and pharmaceutical preparations dropped 18.9%.

In February, Petron Corp.’s crude oil refinery in Bataan temporarily stopped operations due to low margins.

The value of production index (VaPI) also returned to year-on-year growth of a record 154.3% last April.

“The year-on-year [VaPI] growth rate in April 2021 was the first positive growth since April 2019 and the highest annual increase in the 2018-based data series,” the PSA said.

Prior to April’s recovery, VaPI shrank 74.2% year-on-year in March and contracted by 66.6% in April last year.

According to PSA, 20 industries registered growth in their VaPI last April, including basic metals which jumped 729.1%. Refined petroleum and pharmaceutical products remained the worst performers with negative VaPI of 24.5% and 19.4%.