Philippine Import Growth Holds Near 15-Month Low

By Francisco Alcuaz Jr.

Nov. 26 (Bloomberg) -- Philippine import growth held near the slowest pace in more than a year in September as manufacturers bought fewer parts and raw materials to make electronics amid faltering overseas demand.

Shipments rose 2.5 percent to $4.86 billion, following a 1.1 percent increase in August that was the slowest in 15 months, the National Statistics Office said in Manila today.

Philippine electronics exports fell 2.7 percent in September as a global recession prompted consumers to buy fewer products made by Texas Instruments Inc. and other manufacturers in Asia. The Southeast Asian nation this month cut its growth targets, predicting economic expansion may slow to as little as 3.7 percent next year, the weakest pace since 2001.

“We’ve seen a sharp slowdown in electronics trade,” said Song Seng Wun, an economist at CIMB-GK Securities Pte in Singapore. “This is supposed to be peak period, but coinciding with the crisis, we have seen cancellations in orders and a slowdown in production from various countries.”

Exports make up about a third of the Philippines’ $144 billion economy, and finished consumer electronics make up about two-thirds of total exports.

Philippine imports of electronics fell 26.1 percent from a year earlier to $1.72 billion in September. Purchases of raw materials dropped 14.6 percent to $1.79 billion.

Crude oil and other fuel imports rose 52.1 percent to $970 million in September from a year earlier.

The Philippines had a trade deficit of $425 million in September, widening the shortfall to $6.42 billion in the first nine months, compared with $2.92 billion a year earlier.

To contact the reporter on this story: Francisco Alcuaz Jr. in Manila at falcuaz@bloomberg.net