Philippine Export Growth Weakens as Electronics Slide

By Karl Lester M. Yap

Nov. 12 (Bloomberg) -- Philippine exports rose at the slowest pace in six months in September as the Southeast Asian nation sold fewer disk drives and mobile-phone chips.

Shipments abroad climbed 1.2 percent from a year earlier to $4.44 billion, compared with a 6.6 percent gain in August, according to figures released by the National Statistics Office in Manila today. The median estimate of 10 economists in a Bloomberg News survey was for a 2.6 percent increase.

Economies from the U.S. to Europe are slowing amid the worst financial crisis since the Great Depression, prompting companies and consumers worldwide to cut purchases of goods made by Texas Instruments Inc., The Gap Inc. and other manufacturers in Asia. The Philippines cut its 2008 growth target last month, saying exports will falter as the global slowdown deepens.

``It seems the recession in the U.S. is becoming more extensive and is spreading to other countries,'' said Cecilia Tanchoco, an economist at Bank of the Philippine Islands in Manila. ``There is no appetite to buy right now.''

Overseas sales account for about two-fifths of the Philippines' $144 billion economy, which grew the least in three years in the second quarter. The International Monetary Fund last week predicted the first simultaneous contraction in the U.S., Japan and the euro region since World War II.

Philippine sales of electronics, which make up two-thirds of total exports, fell 2.69 percent from a year earlier to $2.59 billion in September. Exports of clothing for fashion houses such as Polo Ralph Lauren Corp. and The Gap fell 5.9 percent.

Exports to the U.S., the Philippines' biggest overseas market, gained 8.85 percent to $806.99 million. Shipments to Japan, the No. 2 destination, gained 2.43 percent to $640.63 million. Sales to China rose 5.57 percent to $490.81 million.

To contact the reporter for this story: Karl Lester M. Yap in Manila at kyap5@bloomberg.net.