The Philippine manufacturing sector experienced a significant boost in August. This report comes from the Philippine Statistics Authority. The value of production index (VaPI) improved by 10.8 percent. This increase is compared to 9.9 percent in the previous month. The index stood at 1.9 percent a year earlier.
In August, the volume of production index (VoPI) rose to 11.8 percent. It increased from 6.7 percent in July. A year earlier, the increase was just 1.3 percent. The Philippine Statistics Authority credits computer and electronic manufacturing. This sector saw a 30.1 percent jump in production.
Computer and electronic products contributed significantly. This sector accounted for 57.3 percent of the overall growth in VaPI. Transport equipment manufacturing also showed growth. It rose to 11.5 percent from 4.9 percent. Basic metals manufacturing increased as well. It went from 23.9 percent to 27.2 percent.
Computer, electronic, and optical products also led VoPI growth. Their production accelerated by 32.1 percent in August. This was an increase from 9.2 percent in July. Transport equipment recorded a strong month. It moved up to 11.4 percent from 2.1 percent. Basic metals manufacturing also saw an upswing. It climbed to 29.0 percent from 17.4 percent.
August's manufacturing operated at high capacity. The average capacity rate slightly dropped to 78.7 percent. It was 78.8 percent in July. This rate remained higher than August 2022's 77.6 percent. Each industry division exceeded 65 percent capacity.
Tobacco products led in capacity usage. They utilized 85 percent of capacity. Coke and petroleum products followed at 83.9 percent. The repair and installation sectors were close behind at 83.3 percent. Of the survey's respondents, 254 firms used full capacity.
These firms represented 35.7 percent of respondents. A larger group worked below full capacity. 287 companies operated at 70-80 percent capacity. Meanwhile, 170 firms fell below 70 percent. The manufacturing sector shows resilience and growth in August.