What's Happening?
The Philippine manufacturing sector experienced a slowdown in growth, with the value of production index (VaPI) increasing by only 1.8% year-on-year in June, down from 3.1% in May. The volume of production index (VoPI) also saw a reduced growth rate of 2.2% compared to 3.4% in May. A significant contributor to this slowdown was a 14% year-on-year decrease in the manufacture of chemicals and chemical products. The average capacity utilization rate for manufacturing was 76.6%, slightly lower than the previous month.
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Why It's Important?
The deceleration in manufacturing growth in the Philippines reflects broader economic challenges that could impact the country's industrial output and economic stability. The decline in chemical production suggests potential disruptions in supply chains or demand fluctuations. This slowdown may affect employment rates and investment in the manufacturing sector, prompting policymakers to consider measures to stimulate growth and address sector-specific issues.
