Neda sees mild growth in industry

MODERATE growth in manufacturing in March 2006 is expected as the industry recovers, according to National Economic and Development Authority (Neda) National Planning and Policy Staff director Dennis M. Arroyo.
       In its Monthly Integrated Survey of Selected Industries (MISSI) based on 440 sample establishments, the National Statistics Office (NSO) reported a 9.9-percent increase in the Value of Production Index (VaPI) in March 2006 from 5.2 percent in February 2006 and 7.8 percent in March 2005. The Volume of Production Index (VoPI), however, still declined by 6.6 percent, although an improvement from 12.1 percent decrease in the previous month.
       Citing the 3.5-percent and 4.5-percent increases in the value and volume of production, respectively, he said this is indicative of constructive adjustment of the market to inflation as a result of the E-VAT implementation.
       He said, however, that the improvements preempted the foreseen downtrend in production because of the oil price increases.
       “Growth in value of production was broad-based with 13 of 20 subsectors posting an increase in value of production,” Arroyo said.
       The Neda official also noted an improvement in the firms’ capacity utilization.
       Manufacturing firms operated at an average capital utilization of 80.1 percent in March 2006 compared to 80 percent in February 2006 and 79.8 percent in the same period last year.
       Sectors showing more than 80 percent in their capacity utilization rate included machinery excluding electrical, electrical machinery, paper and paper products, petroleum products, basic metals, food manufacturing, chemical products and textiles.
       These subsectors cover the export sectors such as textiles (26.7 percent), petroleum products (22.1 percent), electrical machinery (14.3 percent), basic metals (13.5 percent), leather products (13.4 percent), and chemical products (7.2 percent).
       Among the domestic-oriented manufactures, those that showed positive growth are tobacco (39.2 percent), fabricated metal products (32.4 percent), food (26.0 percent), paper and paper products (15.3 percent), rubber products (11 percent). A.F. Cusi III