Exports of electronics pick up, signaling upturn

SALES of electronics and other commodities picked up amid improving global demand in June, slowing a steady decline in exports.

The National Statistics Office said merchandise exports fell 24.7 percent in June from a year ago, compared to a drop of 26.9 percent in May.

“The good news is that month-on-month exports are growing,” said Ernesto Santiago, president of the Semiconductors and Electronics Industries in the Philippines Inc.

Exports have slowly recovered since dropping a steep 40.6 percent at the beginning of the year, when monthly shipments fell to just $2.5 billion in January.

“The June exports expansion was broad-based as all major commodity groups increased, except mineral products,” Economic Planning Secretary Ralph Recto said.

On a monthly basis, exports rose 10.4 percent to $3.41 billion in June from $3.1 billion in May. That was also the highest export value over the last seven months.

Recto said the “major economies in the East and Southeast Asian regions also posted month-on-month increases in their respective exports in June 2009, reflecting the… signs of improvement in the world economic landscape”.

Sales of electronic products were down 26 percent to $1.948 billion in June from a year earlier.

“However, month-on-month it increased by 7.6 percent from $1.811 billion in May 2009,” the statistics office said. Recto said the Semiconductors and Electronics Industries in the Philippines Inc. had upgraded its 2009 sales forecast from the 20 percent to 30 percent expected contraction to now only 15 percent to 20 percent.

April Lee-Tan of Citiseconline said the recovery of exports appeared to be sustainable, citing a pick-up in imports.

“With the US economy showing signs of stabilization, there is a greater chance that demand for exports will pick up,” Lee-Tan told the Agence France-Presse.

Garment exports fell 19.4 percent to $138.88 million while shipments of woodcraft and furniture were down 23.6 percent to $84.59 million.

Other top exports during the month were ignition wiring sets, with sales of $70.26 million; copper metal, $69.29 million; coconut oil, with sales of $61.07 million; petroleum products, $43.24 million; metal components, $37.51 million, and bananas, $33.59 million.

Recto said mineral exports slowed 17.3 percent on a month-on-month basis, as metal prices remained low in the world market.

By commodity group, exports of manufactured goods declined 22.1 percent to $2.933 billion in June while sales of agricultural products dropped 32.3 percent to $188.07 million.

Earnings from mineral products also dropped to $113.64 million, reflecting a 47.5-percent decline from $216.31 million in June 2008.

Exports to the United States fell 13.5 percent to $608 million while shipments to Japan went down by 12.5 percent to $579 million.

Sales to China plunged 44.2 percent to $274 million while exports to The Netherlands dropped 19.7 percent to $291 million.

The other top destinations of Philippine exports in June were Hong Kong, Singapore, Germany, Korea, Taiwan and Malaysia.

For the first half, total exports reached $17.2 billion, down 32.8 percent from $25.6 billion in the same period last year. –Roderick T. dela Cruz, Manila Standard Today