MANILA – The country’s manufacturing sector continued to grow in June but at a slower pace than the expansion seen in May, according to the data from the Philippine Statistics Authority (PSA).

Results of the Monthly Integrated Survey of Selected Industries released on Tuesday showed that the Volume of Production Index (VoPi) for manufacturing grew by 3.4 percent in June this year, slower than the 7.7 percent expansion in May, but a turnaround from the 0.04 percent contraction in June last year.

“The slower annual growth of the VoPI in June 2023 was mainly brought about by the annual declines in the same top three industry divisions that contributed to the slower growth of VaPI (Value of Production Index) during the period,” the PSA said.

These include the manufacture of food products which went down by 3.2 percent from 6.9 percent in May; fabricated metal products, except machinery and equipment, -36.4 percent from -2.9 percent; and beverages, -7.7 percent from 4.8 percent annual increase the previous month.

The VaPI for manufacturing, meanwhile, continued to increase by 3.9 percent in June.

This was slower than the 9.9 percent expansion in May this year and the 7.8 percent growth in June 2022.

“The slower annual growth of the VaPI in June 2023 was mainly contributed by the annual drop in manufacture of food products industry division at -0.4 percent in June 2023 from 10.8 percent annual increase in the previous month,” the PSA said.

Other main contributors to the slower growth of VaPI during the month were the annual declines in the manufacture of fabricated metal products, except machinery and equipment at -33.4 percent from a 2.8 percent increase in the previous month, and the manufacture of beverages which contracted by 2.7 percent from 10.6 percent in May.

The PSA said the average capacity utilization for the manufacturing section in June 2023 was reported at 73.2 percent from 73.4 percent in the previous month.

“All industry divisions reported capacity utilization rates of more than 50 percent during the month. The top three industry divisions in terms of reported capacity utilization rate were manufacture of machinery and equipment except electrical (81.5 percent), manufacture of transport equipment (80.8 percent), and manufacture of rubber and plastic products (80.2 percent),” it said. (PNA)