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Factory output sustains signs of recovery – NEDA

Factory output continued to show signs of improvement for the third consecutive month in July, indicating a turnaround in economic activity, the National Economic and Development Authority (NEDA) said. 

While volume and value indices contracted, they both did at slower rates compared to the previous month, the Philippine Statistics Authority’s (PSA) Monthly Integrated Survey of Selected Industries (MISSI) for July 2020 revealed.

The Volume of Production Index (VoPI) and Value of Production Index (VaPI) declined by 11.9 percent and 14.8 percent year-on-year, respectively.

These, however, are better than the VoPI and VaPI of -12.5 percent and -16.0 percent recorded in the previous month. 

“While manufacturing is not yet in the positive territory, the trends of the volume and value of production in the last three months indicate an improvement in the trajectory of economic activity,” Acting Socioeconomic Planning Secretary Karl Kendrick T. Chua said. 

“This momentum suggests a gradual recovery of demand in the coming months until the end of the year,” he added.

Despite the signs of recovery, NEDA still sees the country’s manufacturing performance to remain subdued in the near-term as businesses expect the pandemic to have a lingering impact on production. 

“Sustaining the gradual and calibrated opening of the economy largely depends on the level of community quarantine that would allow businesses to operate and permit workers to remain mobile,” Chua said.

“To make this possible, safe and a sufficient availability of public transportation can be supported by service contract subsidies if needed,” the acting NEDA chief added.  

To help encourage the resumption of business operations, the government will continue to enforce minimum health standards, which include wearing of face masks and face shields and observing strict social distancing protocols. 

MISSI is a report that monitors the production, net sales, inventories, and capacity utilization of selected manufacturing establishments to provide flash indicators on the performance of the manufacturing sector.


Source: Manila Bulletin (https://mb.com.ph/2020/09/04/factory-output-sustains-signs-of-recovery-neda/?utm_source=rss&utm_medium=rss&utm_campaign=factory-output-sustains-signs-of-recovery-neda)

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