PHL imports pick up in June while factory output slumps - NSO

Philippine imports picked up while local factory output slumped in June the National Statistics Office reported on Thursday. Imports In its latest report, the NSO said the Philippines paid $4.50 billion in imports in June, or a 6.6-percent improvement from $4.23 billion in June last year. However, June imports declined by 7.9 percent from $4.89 billion recorded in May 2011. Total trade, which includes exports, meanwhile declined. "Total trade for June 2011 was registered at $8.63 billion, lower by 1.7 percent from $8.78 billion in June 2010. Thus, the balance of trade in goods registered a deficit at $376 million compared to last year's surplus of $332 million," the NSO said. Electronic Products, mainly used as components for the top export products of the Philippines, cornered a fourth of the total import bill, accounting for 25.5 percent of the payments or $1.15 billion. For the year's first half, the country's total external trade in goods amounted to $55.257 billion or a 10.3-percent rise from $50.119 billion recorded during the same period a year earlier. Total imports grew 15.6 percent to $30.50 billion, while total exports jumped 4.3 percent to $24.757 billion. "Thus, the balance of trade in goods for the Philippines posted a deficit at $5.744 billion for the first six-month period of 2011, a value higher than the $2.636-billion deficit recorded during the same period in 2010," the NSO said. China was the largest import source of the Philippines, accounting for 10.4 percent, followed by the US with 10.2 percent, and Japan, 9.3 percent. Other top sources were Singapore, Taiwan, South Korea, Thailand, the Russian Federation, Saudi Arabia and UAE. Factory output In a report posted on its website, the NSO said the Volume of Production Index (VoPI) contracted by 0.2 percent in June, a significant slowdown from the revised 1.9-percent growth in May. The contraction, according to the latest Monthly Integrated Survey of Selected Industries (Missi) report by the NSO was owing to the "decrease in production output" of machinery except electrical, wood and wood products, transport equipment, basic metals, publishing and printing, leather products and food manufacturing. In terms of value, the Missi grew slower to 2.7 percent from the revised 4.0 percent in June. "This was attributed to the slowdown in production values of the miscellaneous manufactures and chemical products," the NSO said. Most plants also had an average capacity utilization rate of 83.2 percent. "The proportion of establishments that operated at full capacity (90 percent to 100 percent) was 16.8 percent in June 2011. About 60.3 percent of the establishments operated at 70 percent to 89 percent capacity while 22.9 percent of the establishments operated below 70-percent capacity," the NSO said. -- CMA/OMG, GMA News