Philippine factory output contracts in March

After two consecutive months of growth, the Philippine manufacturing sector registered a contraction in March, the first month the country implemented an enhanced community quarantine (ECQ) in high-risk areas.

Preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI) of the Philippine Statistics Authority (PSA) showed that the factory output or the Volume of Production Index (VoPI) fell by 6.3% in March.

"Fifteen major industry groups pulled-down the VoPI," the PSA said, noting that 25% decreases were noted in petroleum products (-34.3%), tobacco products (-33.9%) and miscellaneous manufactures (-29.0%).

Drops were also recorded in non-metallic mineral products (-24.8%), paper and paper products (-22.8%), electrical machinery (-20.1%), leather products (-15.0%).

These were followed by footwear and wearing apparel (-11.5%), beverages (-10.4%), machinery except electrical (-10.1%), textiles (-9.9%), basic metals (-6.7%), and rubber and plastic products (-4.4%).

Data released by the PSA showed that only 28.6% of establishments were operating at a 90%-100% capacity in March. All the rest were operating at lower capacity.

The Philippine metropolis Metro Manila, along with several "high-risk" areas, has been on lockdown since March 17, with the enhanced community quarantine in the area extended twice until May 15. This has affected production operations.

"The proportion of establishments that operated at full capacity (90% to 100%) was more than a quarter (28.6%) of the total number of establishments for manufacturing," said the PSA.

"More than half (53.6%) operated at 70% to 89% capacity while almost one-fifth (17.9%) operated below 70% capacity," it added.—AOL, GMA News