PH FACTORY OUT PUT GROWTH REVVED UP TO 8.2% IN APRIL

The increase in the volume of the country’s factory output revved up to 8.2 percent in April, a turnaround from the 1.3-percent contraction in the same month last year, buoyed by receding prices of inputs like petroleum products.

The latest update from the Philippine Statistics Authority (PSA) shows that the increase in output volume also accelerated from 3.4 percent in March.

In April, the PSA saw higher yearly growth rates in production of food products, as well as transport equipment and nonmetallic mineral products.

The growth of food manufacturing kicked up to 14.7 percent in April from 4.3 percent in March.

Also, the output of transport equipment surged to 38 percent from 26.3 percent, as well as of nonmetallic mineral products to 15.7 percent from 2.9 percent.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said that the latest pick up in manufacturing data was partly due to an easing inflation trend, amid the decline in most of the major global commodities prices such as crude oil, natural gas and coal.

Ricafort said prices of these fuels fell even lower than levels seen when the Russian invasion of Ukraine began in February 2022.

“Better weather conditions into the dry season also helped increase agricultural production that, in turn, led to increased local supplies and reduced input costs for some manufacturers,” he said.

“Thus, the lower prices of these inputs encouraged increased manufacturing activities,” the economist added.