Clear signs of revival in industries are evident in the latest government data and which are expected to spur a strong upward momentum for the rest of the year, according to Socioeconomic Planning Secretary Karl Kendrick Chua.
“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. This momentum suggests a gradual recovery of demand in the coming months until the end of the year,” Chua noted.
Despite the signs of recovery, the National Economic and Development Authority chief 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.
Balancing quarantine level
“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. To make this possible, safe and a sufficient availability of public transportation can be supported by service contract subsidies if needed,” Chua added.
The manufacturing sector showed signs of improvement for the third consecutive month in July 2020. This suggests a turn-around in economic activity, he added.
While volume and value indices contracted, they both did at slower rates compared to the previous month, as reported today by the Philippine Statistics Authority in its Monthly Integrated Survey of Selected Industries for July 2020.
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 are better than the VoPI and VaPI of -12.5 percent and -16.0 percent recorded in June 2020.