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Manufacturing outgrew services…two quarters in a row

After decades of slow industrial growth, the Philippine industry sector delivered a series of strong quarterly growth led by the construction sector that rapidly expanded at quarterly growth rates of 11.6%, 17.8%, 29.9%, 29.3% & 17.4% based on constant 2000 prices.

As a result the industry sector outgrew the services sector in the last three quarters, but more remarkable is the fact that the manufacturing sector outgrew the service sector in the last two quarters. The manufacturing sector grew by 9.5% in Q1-2013 and 10.3% in Q1-2013. The table below taken from the NSCB‘s National Income table of Q2-2013 shows growth rates in constant 2000 prices.

National Accounts Q2 2013

What’s driving the growth of the manufacturing sector? The national accounts table (below) for manufacturing gives us an indication of the rapidly expanding sectors. The largest sub-sector food manufactures is averaging between 7 to 8%, chemicals surged 82.5% in Q2, while basic metals rapidly grew by 116%. Non-metallic minerals (cement) grew double digits driven by the construction sector. Other notable industries are furniture, office, computing machinery.

MFG National Income

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