The manufacturing sector is showing signs of recovery following an increase in capacity utilization from 71.2 percent in April to 73.4 percent in May. Capacity utilization of some of the largest sub-groups of food and beverage manufacturers increased to 76.6 and 67.0 percent, respectively. As the Philippine economy gradually opens, the industry is slowly finding its bearings in resuming its usual operations.
“The low production and sales indices for the manufacturing sector are expected given that most of the country was still on enhanced community quarantine (ECQ) in May. Demand was also subdued as people’s mobility remains limited. Despite this, we are seeing some signs of resurgence of the sector. As we transition to a new normal, we expect gradual recovery with improvements in logistics, particularly in the transport of essential goods and raw materials,” says Acting Socioeconomic Planning Secretary Karl Kendrick T. Chua.
The latest results of the Purchasing Managers’ Index (PMI) points to an improved manufacturing performance moving forward as the PMI rises from 40.1 in May to 49.7 in June. Chua explains that the government will support local manufacturing firms to increase the supply of essential goods and intermediate outputs.
New infrastructure projects will also boost employment rate and up the demand on construction-related manufacturers. Chua also adds that micro, small and medium enterprises will continuously be provided assistance through grants, loans and other credit guarantees.
“As more firms reopen, we need to remind everyone that the risk of COVID-19 infection remains. It is very important for firms to strictly comply with minimum health standards to mitigate risks in the workplace. We need to make sure that our workers’ health is not compromised and that we are able to contain the spread of the virus,” says Chua.
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