The country’s manufacturing output slowed to 5.8 percent in May 2017, according to the latest Monthly Integrated Survey of Selected Industries (Missi) released by the Philippine Statistics Authority (PSA) on Tuesday.
The PSA said this was slower than the 7.4 percent posted in May 2016. However, the National Economic and Development Authority (Neda) pointed out that this was higher than the 4.3-percent year-on-year growth posted in April 2017.
Neda Undersecretary for Planning and Policy Rosemarie G. Edillon said the slowdown in the volume of production index was due to the elections.
“May 2016 was an election year, hence, many election-related demand [that] is not present this year,” Edillon told the BusinessMirror. “In our full technical report, we presented a moving average. This is a better gauge of change for shorter periods of data.”
Neda Secretary Ernesto M. Pernia said the growth in manufacturing output in May 2017 was largely driven by the increase in production of construction and export-oriented products.
Pernia added construction products are expected to grow further toward the end of the year, backed by the government’s massive infrastructure-development spending.
These include the continuing implementation of major infrastructure projects, such as the North Luzon Expressway—Southern Luzon Expressway Connector Road; the Cavite-Laguna Expressway; and the Philippine National Railway North South Commuter Rail.
“Manufacturing output is expected to sustain its growth toward the end of the second quarter, driven by buoyant domestic demand and optimistic business outlook,” Pernia said.
“Seventy-five flagship projects have been identified by the administration to address our huge infrastructure deficit,” he added.
Pernia, likewise, said it is important to streamline efforts across all levels of government to ensure inclusive innovation, which will benefit the manufacturing sector.
He added the Philippine Development Plan 2017-2022 aims to increase the country’s growth potential by involving greater use of science and technology, and promoting innovation.
“Bureaucratic procedures at the national and local levels should be simplified across the country, from urban centers to far-flung areas. Market-driven research should also be made available to everyone so that firms, whether small or large, can expand production and reach larger markets,” he said.
Missi is a 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.