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March Philippine factory output likely slowed to 5.1%

Staff writer |
The growth of the Philippine factory output likely slowed to 5.1 percent in March after registering 8.4 percent growth in February, the economic research arm of Moody’s Investors Service said.

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The growth forecast for March also shows a sharp deceleration year-on-year from the growth of 14.9 percent recorded in March 2015, Moody’s Analytics said.

“Philippine industrial production is forecast to have grown 5.1 percent year-on-year in March following February’s 8.4 percent increase,” Moody’s Analytics said in a weekly outlook, ahead of the release of official data by the Philippine Statistics Authority (PSA).

The research firm did not, however, provide a forecast for manufacturing value, which expanded 2.8 percent in February, a reversal of a 7.6 percent decline in the same month a year earlier, according to data from the PSA.

Moody’s Analytics pointed out that the main driver of the strong growth in manufacturing output this year has been the revival in food manufacturing.

“This will continue in the coming months with crop yields recovering as the effects from a severe El Niño climate pattern dissipate,” it added.

Manufacturing output as measured by the Volume of Production Index (VoPI) grew at a slower pace of 8.4 percent in February from 34.3 percent in January.

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