Philippines March imports fall for third straight month

MANILA: The Philippines' imports in March fell for a third straight month, with the pace of decline accelerating from February and raising concerns that growth may slow for the export-reliant economy as global demand for its high-tech shipments falter.
Manila's largest imports are inputs used by the semiconductor and electronics industry, also the biggest export sector and a major contributor to the economy.
Imports in March fell 8.4 percent from a year earlier, the steepest decline since April 2012, due to a contraction in the imports of mineral fuels, chemicals, plastics, industrial machinery and electronic products, the statistics agency said, but the value of imports was at a three-month high.
"It is clear that we are not able to ride the rebound in electronics exports in the region. We seem to be falling somewhat behind our improving neighbors," said Emilio Neri, economist at Bank of the Philippine Islands in Manila.
The government is set to announce first quarter GDP data next week and economists expect the economy to have been supported by strong domestic demand.
"We’re still quite optimistic," said Neri.
"We saw a lot of very strong prints in the corporate sector, incomes growing by 20 to 40 percent, then car sales are up 50 percent for January. Demand seems to be generally firm."
The Philippines is facing export headwinds as the world's two largest economies appear to be losing momentum. Chinese factory activity declined in May for the first time in seven months and US manufacturing grew at its slowest pace since October.
The imports of components and devices, which are mostly used in semiconductor products for exports, rose at a slower pace of 0.6 percent in March from a month earlier, weaker than February's 15 percent rise.
Exports have been largely hit by weakening demand for the country's main electronics shipments from its traditional markets in the West and regional neighbors.
The electronics industry group has said electronics exports, the country's top export item, could recover gradually and grow 5 to 6 percent this year as overseas demand picks up, after a 5.2 percent drop in 2012.