The robust growth of the manufacturing sector is expected to continue for the rest of the year on the back of upbeat investor and consumer confidence, according to the National Economic and Development Authority (Neda).
Based on the Monthly Integrated Survey of Selected Industries (MISSI), the Volume of Production Index and Value of Production Index increased by an average of 20.6 percent for the January-to-June 2018 period, Neda said.
In June 2018 MISSI data showed manufacturing volume grew by 18 percent, while production value grew 18.9 percent.
“Robust domestic and higher external demand, increased investments and overseas Filipino workers remittances, improved consumer confidence and stable business confidence backed this growth in manufacturing,” Socioeconomic Planning Secretary Ernesto M. Pernia said in a statement on Tuesday.
“The prospect for the second half of the year is bright. We hope to further climb this upward trajectory as we implement reforms positively affecting the industries and doing business in the country,” he added.
Pernia also said the inclusive, innovation-led, industrial strategy, the Ease of Doing Business and Efficient Government Service Delivery Act, will help boost the manufacturing sector.
He added the completion of ongoing infrastructure projects are expected to also contribute to the growth of major industries.
“To further drive manufacturing growth, local government units can be capacitated more to attract investments in manufacturing and manufacturing-related services outside Metro Manila,” Pernia said.
The Neda said that, in June, the majority of subsectors posted high production indices, including food manufacturing, petroleum products and export-oriented products.
Growth in the production volume of construction-related manufactures eased in June. However, net sales of cement, glass products and basic metals recorded double-digit growth at 10.1 percent, 15.8 percent and 29.8 percent, respectively.
The Neda said the increased production of construction-related manufactures was in response to the continued demand for non-residential buildings, such as industrial, commercial and institutional buildings.
MISSI is a monthly report that monitors the production, net sales, inventories and capacity utilization of selected manufacturing establishments to provide flash indicators on the performance of the manufacturing sector.
Image credits: Nonie Reyes