Factory output falls sharply in Apr. — NSO

After a momentary upsurge with the change in government, factory output in April again fell sharply due to the drop in production of basic metals industry mirroring the slowing economic growth, the government reported yesterday.

Data from the National Statistics Office (NSO) showed that manufacturing output dropped to 2.26 percent in April from 28.7 percent growth in the same period last year. In March, factory output was 9.7 percent.

The April production output was the lowest since October 2009 that showed a five percent contraction.

The NSO, however, said that nine major sectors contributed significant increases in value of production such as non-metallic mineral products, beverages, publishing and printing, paper and paper products, furniture and fixtures, rubber and plastic products, chemical products, miscellaneous manufactures and fabricated metal products.

On a monthly basis, the value of production index (VoPI) recorded a decrement of 4.3 percent in April compared with 4.5 percent growth recorded in the previous month.

The NSO said the average capacity utilization of these factories stood at 82.8 percent in April, lower from 83.3 percent capacity utilization in March.

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

The proportion of establishments that operated full capacity was 17.8 percent in April from 16.8 percent in March.

About 59.8 percent of the establishments operated at 70 percent to 89 percent capacity while 22.4 percent of the establishments operated below 70 percent capacity.

The value of production Index (VaPI) also dropped to 4 percent in April from 22.8 percent in April in the same period last year.

The NSO blamed the decline to the diminished production values of basic metals and miscellaneous manufactures.

However, eight of 12 major sectors reported two-digit increases in production values such as non-metallic mineral products, rubber and plastic products, petroleum products, publishing and printing, beverages, fabricated metal products, chemical products and paper and paper products.

On the other hand, VaPI on a monthly comparison slid 4.7 percent from a 4.3 percent increase in March 2011. The NSO said the volume of ne sales index (VoNSI) shrank as it recorded an annual increase of 6.6 percent in April, while the value of net sales index (VaSNSI) registered a year-on-year growth of 7.9 percent in April. –Daily Tribune