By Roderick T. dela Cruz

THE combined output of 20 manufacturing industries fell by more than 15 percent in December from a year ago, and it followed a 7.2-percent contraction in November and a 1.2-percent increase in October of the same year, the government said yesterday.

The figures come from a survey of 500 of the largest manufacturing plants by the National Statistics Office, which says the volume of production index went down by 15.4 percent in December after 15 of the 20 industries under review posted production declines.

Only establishments with more than 50 workers each are included in the government agency?s monthly survey.

The same agency said merchandise imports tumbled 34.2 percent in December, to $3.29 billion from more than $5 billion the year before, as manufacturers cut orders for electronic inputs for future production.

Despite the weak imports, the Philippines? trade deficit hit $617 million in December?and a record $7.6 billion in the whole of 2008?as exports plunged by 40.3 percent to $2.675 billion the same month.

Economic Planning Secretary Ralph Recto said the global recession would continue to weigh on Philippine exports and imports this year.

Exports probably dropped at least 20 percent in January and February this year, said economist Victor Abola of the University of Asia and the Pacific.

But Recto said the economy could grow by up to 4.4 percent this year as the government spent more money and created 800,000 jobs.

?We will come out of this crisis stronger than the rest,? Recto said at the Philippine Economic Briefing in Makati yesterday.

Senate President Juan Ponce Enrile urged President Arroyo to sign the P1.415-trillion budget quickly to avoid delaying critical projects financed by it.

?As far as I know, the President is studying the budget, but I do not know the extent to which she has studied it,? he said.

?My understanding is she will sign the budget.?

The industries that suffered a decline in output in the final month of 2008 were machinery, miscellaneous manufactures, textiles, petroleum products, electrical machinery, publishing and printing, furniture and fixtures, leather products, basic metals, transport equipment, paper products, food, beverages and rubber and plastic products.

The index for food manufacturing, the largest industry, was down 4.7 percent, while beverage production declined 4.9 percent.

The value-of-production index, which mirrors the movement in both volume of production and the producer price index, went down 9.2 percent in December after posting a 0.2-percent growth in November.

The producer price index, a composite of producer?s prices of representative commodities included in the market basket, was up 6.8 percent in December.

The volume of net sales index fell 22.1 percent, while the value of net sales index dropped 16.8 percent.

The average capacity utilization rate among all the companies surveyed was 80.5 percent in December, lower than 80.7 percent in November and 81.5 percent in October. With Fel V. Maragay