Factory output grows at slower pace in Oct By Cai U. Ordinario
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@caiordinario
HE country’s manufacturing out put continued to increase, albeit at a slower pace, in October, according to data released by the Philippine Statistics Authority (PSA) on Thursday. PSA data indicated that the Volume of Production Index (VoPI) went up by 24.7 percent in October. However, this is much slower than the 123.1-percent growth registered in September. In October 2020, VoPI contracted by 25.4 percent. “ T he i nc re a se i n VoPI w a s brought about by the positive growth rates of 14 industry divisions. Of these, manufacture of
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fabricated metal products was the major contributing factor with 176.6 percent growth,” the PSA said. “On the contrary, the remaining eight industry divisions recorded decreases, led by manufacture of tobacco products with a -58.6 percent annual rate,” it added. The PSA also reported that the average capacity utilization rate for the manufacturing sector in October was slightly higher at 67 percent, from 66.6 percent in September. About one fifth (20.5 percent) of the total number of responding establishments was accounted for by those that operated at full capacity (90 percent to 100 percent). Meanwhile, 37.4 percent of the total of respondents operated at 70
to 89 percent capacity, while 42.1 percent operated below 70-percent capacity. “There were 20 out of 22 industry divisions with more than 50 percent average capacity utilization rate, led by manufacture of other nonmetallic mineral products [81.1 percent], followed by manufacture of electrical equipment [77.3 percent], and manufacture of furniture [76.5 percent],” it said.
VaPI for manufacturing
As for the Value of Production Index (VaPI) for manufacturing, PSA said it also registered an increase of 24.8 percent in October. However, this is slower than the 122.5 percent in September. In contrast, the annual growth rate for VaPI
in October 2020 was recorded at -28.9 percent. “The growth in VaPI for October 2021 was contributed by the increases in 14 of the 22 industry divisions. Among these, the top contributor was manufacture of fabricated metal products except machinery and equipment with 176.4 percent annual growth rate,” said the attached agency of the National Economic and Development Authority (Neda). “On the other hand, the remaining eight industry divisions recorded decreases, with the manufacture of tobacco products registering the fastest annual decline of -58.2 percent,” it added. See “Factory,” A2
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UP INFLATION RISK–BSP C ‘Bayanihan’ budgets for labor not enough–WB
By Bianca Cuaresma @BcuaresmaBM
ONTINUED supply chain disruptions could pose an upside risk to inflation next year, the Bangko Sentral ng Pilipinas (BSP) governor said on Thursday.
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HE Ph i l ippi ne gover nment’s budget under Bayanihans 1 and 2 to help the labor sector was insufficient given the millions of jobs lost due to the pandemic, according to the World Bank. In a br ief ing on T hursday, World Bank Senior Economist for Social Protection and Jobs Yoonyoung Cho said the country’s budget, its scope, and targeting were limited when it came to the labor market needs during the pandemic. Cho said the total employment and labor market interventions of the country under the two laws amounted to P69.96 billion. The bulk of the amount went to businesses (P47.48 billion) while interventions for workers amounted to P22.48 billion. “Although the policy direction was right, the budget and scope of labor market specific programs were small for the sheer magnitude and duration of the pandemic shock,” Cho said. Cho said the pandemic caused millions to lose their jobs and look for additional sources of income. Many jobs in the formal sector were also lost, prompting Filipinos to become self-employed. showsof ofproducts, products, withhosts hostsand and shows with guests providing more detailsand and Sheproviding added thatmore managerial jobs guests details givinghard testimonies, Zalora said. giving testimonies, said. were to comeZalora by while there wouldalso also helpbrands brands inwould help inwasItaItnotable increase in elemennovate onflexible flexiblesales salesthat promonovate on promotary occupations—jobs did tions, such givingdiscounts, discounts, tions, such giving not pay veryasas well. and offering offering easier easier and and attracattracand tivepayment paymentoptions optionssuch suchasasthe the tive See “Bayanihan,” A2 buy-now-pay-later (BNPL) opbuy-now-pay-later (BNPL) option,which, which,ititsaid, said,emerged emergedasas tion, themost mostpopular popularoption optionamong among the Asian shoppers. Asian shoppers. 36.0723 n EU 57.0587 n SAUDI arabia 13.4106 Source: BSP (December 9, 2021) Indonesia, for for example, example, InIn Indonesia, Google saw saw a a “10x “10x increase increase inin Google searchesfor fore-wallet e-walletservices servicesand and searches 15xrise riseininBNPL BNPLservices servicesininthe the 15x lastfive fiveyears. years.Other Otherappealing appealing last payment options options like like monthly monthly payment installments,toto00percent percentinterinterinstallments, estfees feeson oncredit creditcards, cards,provide provide est access toto quality quality products products and and talsavviness savvinessand andtaste tastefor forluxury luxury access tal serviceswhile whilealso alsoimproving improvingfi-fiandsustainability. sustainability. services and nancialinclusion. inclusion. “Thereport reportisispositioned positionedasasa a nancial “The Zalora,for forinstance, instance,offers offers21 21 referencepoint pointthat thathelps helpsZalora’s Zalora’s Zalora, reference paymentmethods methodsacross acrossthe therere900brand brandpartners partnersnavigate navigatethe the payment 900 gion, including including cash-on-delivery cash-on-delivery region’sdiversity diversityand andevolving evolvingreregion, region’s andBNPL BNPLoptions optionsacross acrossthe themarmartaillandscape,” landscape,”Zalora’s Zalora’sCEO CEOGunGunand tail kets.ItItlaunched launchedits itsfirst firstco-brandco-brandjanSoni Sonisaid. said. kets. jan creditcard cardininpartnership partnershipwith with Aside from from digital digital partners partners ededcredit Aside RCBCand andMastercard Mastercardininthe thePhilPhillike Google, Google, Mastercard, Mastercard, H&M, H&M, RCBC like ippines,the thefirst-ever first-everfashion fashionand and Lush,Paula’s Paula’sChoice, Choice,HABIB, HABIB,AtAtippines, Lush,
See “Supply,” A2
FILIPINOS JOIN LEAST MOTIVATED WORKERS’ RANKS–IMD REPORT
Online shoppingplatform platformnotes notesbehavioral behavioralshift shift Online shopping F amongconsumers, consumers,brand brandmakers makersamid amidCovid Covid among ILIPINOS are now most unmotivated workers in among the least motithe world because of Covid-19. vated workers in the The Philippines was also world due to the pandemic, the worst performer among according to the latest Globthe Asean countries included al Talent Ranking Index rein the index this year. Sinleased by the Institute for gapore ranked 12th overall, Management Development slipping three notches from ByManuel ManuelT.T.Cayon Cayon (IMD) World Competitiveits 2020 ranking; Malaysia, By ness Center. 28th, slipped three notches; Based on the 2021 report, Thailand retained its ranking t he Ph i l ippi nes sl ipped 9 at 43rd; and Indonesia, 50th, notches to 57th out of 64 slipping five notches. economies worldwide. This See “Filipinos,” A2 has made Filipinos the fourth
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consumersbecome becomemore morediscerndiscernconsumers ingand andconnected, connected, weare areseeing seeing Presidential aspirant Bongbong Marcos and Sara Duterte-Carpio are ing we incredible innovations happening incredible innovations happening seen at the head of a caravan in Quezon City that drew hundreds of inthe theretail retail sectorthat completely in sector completely thousands on Wednesday, inthat what organizers billed as a show of force reimagine the shopping experireimagine the experiby the tandem in Metroshopping Manila. Marcos’s chief of staff apologized for ence,” Gunjan Soni, chief executive ence,” Gunjan Soni, chief executive the traffic jams on QC’s major thoroughfares caused by the long lines the ZaloraComelec Group, toldan anplea against possible officer ofof the Zalora Group, told ofofficer vehicles and supporters. renewed its online presentation of its Trender online presentation of its Trender super-spreader events, but said it’s the health and local authorities, Report 2021. Report 2021. not Comelec, which can sanctions organizers. Story on page A2. Shedescribed describedthe the“shoppers “shoppersofof She tomorrow”asas“digital “digitaland anddiverse diverse tomorrow” across Southeast Asia.” across Southeast Asia.” UK 66.4654 n HK 6.4513 n CHINA 7.9295 n singapore 36.9712 n australia “It’s a a digital digital diaspora,” diaspora,” she she “It’s said,citing citingGoogle Googletrend trendmonitormonitorsaid, ingthat thatshows shows40 40million millionnew newInIning ternetusers userscame cameonline onlineinin2021, 2021, ternet “bringingthe theinternet internetpenetration penetration “bringing SoutheastAsia Asiatoto75 75percent.” percent.” ininSoutheast “Infact, fact,eight eightout outofof10 10InterInter“In netusers usersininthe theregion regionare aredigidiginet talconsumers. consumers.Recognizing Recognizingthis this Internetand andelectronic electroniccommunicommunital Internet shiftininadoption, adoption,brands brandsquickly quickly cationgadgets gadgetsbybytheir theirside. side.Google Google shift cation expandedtheir theironline onlinepresence presencetoto trendshows showsMalaysian Malaysianshoppers shoppers expanded trend reachthese thesenew newdigital digitalconsumconsumspendclose closetoto99hours hoursonline onlineon on reach spend ers,and andZalora Zalorareported reporteda a19-per19-peraverage,“and “andare arethe themost mostlikely likelytoto ers, average, centincrease increaseininnew newbrands brandsthat that value-driven.” cent bebevalue-driven.” joinedthe theplatform platforminin2021,” 2021,”she she Singaporean shoppers shoppers are are joined Singaporean added. mostlikely likelytotoinvest investininluxury luxurypurpuradded. most Withmore moreSoutheast SoutheastAsians Asians chases, with with Google Google search search data data With chases, browsingnow nowand andgetting gettingthemthemshowinga a21-percent 21-percentyear-on-year year-on-year browsing showing selves more more online, online, the the average average increaseininSingaporeans’ Singaporeans’searches searches selves increase
AVAOCITY—A CITY—Aleading leading AVAO onlinebrand brandretailer retailerin inAsia Asia online seeingaasharp sharpbehavioral behavioral isisseeing shiftamong among consumers consumersand andbrand brand shift makersthat thatmay mayreinvent reinventand andinnovate innovate makers approaches, especially thenlatter, latter, approaches, especially the PESO exchange rates from nfrom US 50.3030 japan 0.4426 n asdata dataanalytics—since analytics—sincethe theonset onsetof ofthe the as pandemic—indicatethe theemergence emergenceof of pandemic—indicate morediscerning discerningconsumers consumersadaptive adaptiveto to more electronic,or oronline, online,shopping shoppingexperience. experience. electronic,
For one, one, the the Southeast Southeast Asia Asia For Trender Report Report 2021 2021 byby Zalora Zalora Trender showsthat that40 40million millionAsians Asiansmade made shows theirdebut debutininInternet Internetuse useand and70 70 their millionhave havemade madetheir theirfirst firstonline online million purchasewithin withinthe the2020 2020and and2021 2021 purchase period, many many ofof them them attracted attracted period, anddrawn drawninto intoactual actualpurchase purchasebyby and productsales salespromotion promotionand anddisdisproduct countofferings. offerings. count
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higher costs of imported production inputs,” Diokno said. “Upside risks to global inflation remain, as supply chain constraints push input prices higher which may add further pressure to non-oil prices in the coming quarters. The BSP is cognizant of the upside risk to the inflation outlook,” he added.
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‘DIGITAL DIASPORA’
In a virtual briefing, the governor said the emergence of the Omicron variant may further have an effect on global supply chains as governments reimpose mobility restrictions to curb infections. “External price shocks which may emanate from shortages and persistent supply chain disruptions pose upside risks to the inflation outlook as manufacturers and retailers could pass on the