MANILA, Philippines – Manufacturing output likely expanded by a slower five percent in October, Moody’s Analytics said, as the sector continues to reflect the cooling economy.
“Industrial production has slowed in recent months, mirroring the broader economy’s cooling. Fixed investment from both the public and private sectors has weakened through 2014, partly as a result of the slowdown in government approval of new infrastructure projects,” Moody’s Analytics said in a research note.
“Solid export demand and continued remittances from overseas should lift production in the coming months,” the firm added.
Official October manufacturing data will be released on Wednesday.
Latest data showed factory output, as measured by the volume of production index, eased further to 3.2 percent in September from 6.6 percent in August and 8.1 percent in July.
This was due to the decrease in the production of wood and wood products, furniture and fixtures, transport equipment, footwear and wearing apparel, tobacco products, and electrical machinery, among others.
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Increases in the production of printing, beverages, fabricated metal products, leather products, petroleum products, and machinery except electrical products lifted factory output during the period.
Meanwhile, the value of production index only went up 3.8 percent in September, also a deceleration from 5.2 percent in August and 6.4 percent in July.
Data showed this was amid a decline in wood and wood products, miscellaneous manufactures, footwear and wearing apparel, transport equipment, and basic metals, among others.
