MANILA, Philippines ? Merchandise imports fell 34.5 percent to $3.27 billion in January from $4.99 billion a year earlier as the global economic slump worsened, the National Statistics Office reported Wednesday.

The import bill contracted 0.9 percent from $3.3 billion in December.

Exports plummeted 40.6 percent to $2.49 billion in January after a contraction of 40.3 percent in December.

Both exports and imports have been declining since October.

Total trade fell 37.3 percent to $5.78 billion in January from $9.22 billion a year earlier. The trade deficit dropped slightly to $759 million from $762 million.

January imports of electronic components, which accounted for two-fifths of total imports, fell 43.3 percent to $1.31 billion from $2.31 billion a year earlier, but were up 15.1 percent from $1.14 billion in December.

January imports of mineral fuels, lubricants and related materials ? the second-biggest in value ? fell 59 percent to $421.93 million from $1.03 billion a year earlier, with a sharp drop in crude oil cost.

The third-biggest import for the month ? transport equipment ? jumped 43.7 percent to $198.34 million from $138 million.

Industrial machinery and equipment imports fell slightly to $163.49 million from $165.37 million. Iron and steel imports dropped 20.8 percent to $84.33 million from $106.43 million.

Other major imports in January were organic and inorganic chemicals, down 24.2 percent at $80.92 million; cereals and cereals preparation, up 40.1 percent at $80.72 million; plastics in primary and non-primary form, down 32.1 percent at $65.24 million; medicinal and pharmaceutical products, up 32.2 percent at $63.63 million; and textile yarn, fabrics, made-up articles and related products, down 27.2 percent at $54.96 million.

Meanwhile, the value of production of the manufacturing sector slumped 16.8 percent in January from a year earlier, with reduced production in 18 of 20 major industries, according to preliminary results of the National Statistics Office (NSO) Monthly Integrated Survey of Selected Industries.

The NSO said positive year-on-year growth was in only two industries: the nonmetallic industry and beverage industry, at 7.1 percent and 10.0 percent, respectively.

Two-digit declines were recorded in petroleum products, leather products, basic metals, tobacco products, miscellaneous manufactures, furniture and fixtures, paper and paper products, textiles, electrical machinery, publishing and printing, transport equipment, footwear and wearing apparel, and machinery except electrical.

The four-biggest losers were petroleum products at 76.4 percent; leather products, 38 percent; basic metals, 29.3 percent; and tobacco, 29.2 percent. Ronnel W. Domingo; edited by INQUIRER.net