Tuesday, January 24, 2006

Output of Philippine factories rose 4 percent in November

We could probably expect a better figure from the manufacturing sector come January 30 when the National Statistical Coordination Board releases the 2005 Gross Domestic Product report. In November, industrial output rose 4 percent owing to rapid expansion in the output of at least eight manufacturing sub-sectors namely furniture and fixtures, petroleum, fabricated metals, chemicals, rubber, non-metallic minerals, textiles, and tobacco.

In its latest monthly integrated survey of selected industries (Missi), the National Statistics Office likewise reported a 12.9 percent rise in the value of production index indicating a generally favorable business environment for the manufacturing sector. Factories also have betters sales figures (i.e. 8.2 percent rise in value).

Despite gains in industrial output, however, the average capacity utilization remained practically the same—80.3 percent from 80.4 percent in October. To some extent, this is good news because it means there would be less inflationary pressures on the supply side as factories still have elbow room to raise production in response to a potential rise in demand without resorting to expansion in production capacity. On the other hand, it means factories are not likely to hire more workers soon.

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taoharu said...

I am in the real estate business -- selling low-cost housing in Bulacan. My business had it difficult in 2005. But it appears real estate in the Calabarzon area did well. Do you have any idea how different regions performed economically in 2005?

Dave Llorito said...

the regional breakdown of the country's GDP is delayed by a few months so we wouldnt know the numbers. but there are ways of determining where the action is. i have developed a methodology for finding that out as part of my masters thesis. that's a long story of course... the shortest answer will be finding out the main driver of real estate growth which is 1) outsourcing, meaning demand will be in grade A offices in business centers; 2) OFW money which has been flowing towards condo units within the business districts. maybe calabarzon, yes. but demand for industrial lots there are down. so i guess its in the housing markets.

taoharu said...

Thank you for replying. I hope you will write something on regional performances. That will be very interesting.

Dave Llorito said...

will just do it once the numbers are available. Im doing other research projects with regional breakdown. will post the results when they are done. thanks for dropping by.