Imports sustain expansion, but factory output slows

THE National Statistics Office (NSO) on Thursday said imports in October rose to a five-month high on electronics and fuel purchases from abroad, even as domestic factory output grew at its slowest pace in 10 months.

The NSO said total merchandise imports increased 28.4 percent to $4.888 billion in October, from $3.808 billion in the same month last year.

This was the fastest pace since May when purchases from abroad grew by 31.4 percent.

On a monthly basis, Philippine purchases of merchandise goods from abroad rose 6.9 percent in October from $4.57 billion in September.

For the first 10 months, total imports posted a 26.3 percent increase to $44.826 billion from $35.501 billion in the same period last year.

The NSO earlier reported that exports in the first 10 months grew 37.2 percent to $43.084 billion this
year from $31.397 billion last year.

As a result, the country incurred a trade deficit of $1.742 billion this year, lower than the $4.104 billion in the same 10-month period last year.

Electronics, which accounted for 31.5 percent of the total import bill went up by 11.7 percent to $1.541 billion in October, over last year’s $1.380 billion.

Imports of mineral fuels, lubricants and related materials grew by 47.3 percent to $901.52 million from $612.11 million last year.

Japan was the Philippines’ biggest source of imports for October amounting to $601.20 million from $500.95 million last year.

This was followed by the US at $481.47 million; People’s Republic of China, $436.66 million; Singapore, $421.92 million; and Taiwan, $326.71million.

Payments for imports from the top 10 sources amounted to $3.613 billion, or 73.9 percent of the total.

Separately, the NSO said Philippine factories in October grew by 16.3 percent, lower than September’s 16.8 percent.

The October volume of production index (VoPI) was the lowest since December last year, when the index expanded by 12.2 percent.

The agency attributed the modest increase to the 20 major sectors that recorded a two-digit growth, namely miscellaneous manufactures, paper and paper products, publishing and printing, machinery except electrical, electrical machinery, textiles, transport equipment, basic metals, beverages and food manufactures.

On a monthly basis, VoPI grew by 5.2 percent in October from the previous month’s drop of 0.7 percent.

“This was primarily due to the expanded production performance of 13 major sectors led by miscellaneous manufactures, with two-digit growth of 20.1 percent,” NSO said.

The NSO said 16.7 percent of the 100 manufacturing firms surveyed operated at full capacity in October.
The average capacity utilization of these factories stood at 83.5 percent.

The NSO said sectors that posted more than 80-percent capacity utilization rates were basic metals, food manufacturing, electrical machinery, machinery except electrical, miscellaneous manufactures, non-metallic mineral products, paper and paper products, chemical products, rubber and plastic products.

The NSO said the value of production index (VaPI) grew by 8.7 percent in October from the revised 8.6 percent growth in September.

On a monthly basis, VaPi in October fell 1.3 percent.

The value of net sales index in October recorded a 5.7 percent growth in October, while the volome of net sales went up by 13.1 percent. –DARWIN G. AMOJELAR SENIOR REPORTER, Manila Times