PH factory output slowed in Oct

Factory output growth snapped three consecutive months of ascent after slowing down in October despite the seasonal surge in demand during the holiday season.A monthly survey of selected industries Volume of Production Index (VoPI), a measure of manufacturing output, expanded 1.7 percent year-on-year in October, the Philippine Statistics Authority (PSA) reported on Thursday.This was markedly slower than the 9.9-percent growth recorded in September. Nevertheless, factory output is now on a 16-month growth streak.

The sluggish VoPI at the start of the fourth quarter—which usually marks the beginning of robust consumption driven by the holiday season—does not bode well for the manufacturing industry, a leading indicator for domestic demand.

But Domini Velasquez, chief economist at China Banking Corp., said the October reading “could be an outlier,” citing advance estimates showing a healthy expansion in output last November.

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A separate survey by S&P Global showed the Philippines’ Purchasing Managers’ Index (PMI), another closely monitored gauge of manufacturing output, ticked up