Philippine Import Growth Slows on Electronics Parts

By [bn:PRSN=1] Karl Lester M. Yap []

July 25 (Bloomberg) -- Philippine import growth slowed for a fourth straight month in May as manufacturers bought fewer electronics parts, signaling exports of the country's laptop computers and mobile-phone chips may fall further.

Imports rose 11.3 percent from a year earlier to $4.78 billion, after gaining 11.8 percent in April, the National Statistics Office said in Manila today. That's the smallest gain since October.

``There is an ongoing global slowdown, which bodes ill for our exports, particularly the electronics sector,'' said Ildemarc Bautista, an economist at Metropolitan Bank & Trust Co. in Manila.

Exporters in Asia are hurting from a housing recession and growth slowdown in the U.S., the region's largest overseas market. Overseas sales account for about two-fifths of the Philippines' $118 billion economy, where growth is forecast to slow from last year's three-decade high.

Neighboring Singapore's exports fell for a second month in June as electronics shipments declined for a 17th consecutive month. Philippine electronics shipments, which make up two- thirds of total exports, declined 3.4 percent in May from a year earlier.

North American orders for semiconductor equipment fell 36 percent in June as chipmakers curbed spending amid a 17-month industry contraction, according to trade group Semiconductor Equipment & Materials International.

Electronics Parts

Philippine imports of electronics parts fell 14.4 percent from a year earlier to $1.51 billion in May, after a 10.6 percent decline the previous month. More than 40 percent of imports are raw materials purchased by local units of Texas Instruments Inc. and other manufacturers.

Crude oil and other fuel imports rose 50 percent in May from a year earlier to $1.18 billion. Purchases of raw materials fell 6.4 percent to $1.71 billion. Imports of consumer goods added 53.9 percent to $629 million. Capital goods purchases, including telecommunications equipment and machinery, declined 2.2 percent to $1.19 billion.

The trade deficit widened to $559 million in May from $168 million a year earlier, today's report showed. The shortfall for the first five months of the year was $3.16 billion, compared with $347 million a year earlier. Exports increased 2.3 percent in May.

To contact the reporter on this story: Karl Lester M. Yap in Manila at Kyap5@bloomberg.net.