Despite ongoing weather disturbances, domestic factory output recorded year-on-year growth in September, according to the Philippine Statistics Authority (PSA).

The PSA’s latest monthly integrated survey of selected industries (MISSI), released on Friday, Nov. 7, showed that the volume of production index (VoPI)—a proxy for factory output—increased by 1.3 percent in September, up from 0.9 percent in the previous month.

In contrast, VoPI recorded a 5.6-percent year-on-year decline in the same month last year.

According to the PSA, the accelerated year-on-year growth rate of manufacturing VoPI in September was led by the manufacture of coke and refined petroleum products, which recorded a smaller annual decline of 3.2 percent from 12.1 percent in August; the manufacture of beverages, which rebounded to 2.9-percent growth from an 8.2-percent drop the previous month; and the manufacture of computer, electronic, and optical products, which rose 4.2 percent, faster than the 1.2 percent in August.

The PSA also highlighted other industry divisions that contributed to the overall year-on-year growth of VoPI, including the manufacture of food products, transport equipment, and computer, electronic, and optical products.

While food products manufacturing supported year-on-year VoPI growth, the PSA reported that its overall annual growth rate slowed to 12.8 percent in September from 21.3 percent in August. In comparison, the same sector posted a one-percent increase in September 2024.

The PSA noted that the slowdown in the annual growth rate of VoPI for food manufacturing in September was driven by declining year-on-year growth in five of the eight industry groups.

It also reported faster year-on-year growth in VoPI for certain food sectors, with processing and preserving of fruits and vegetables rising 9.6 percent in September from 6.4 percent in August, and the manufacture of other food products increasing 6.4 percent from 4.2 percent in the previous month.

The PSA added that the manufacture of grain mill products, starches, and starch products recorded a smaller annual decline of 8.3 percent in September, improving from an 8.9-percent drop in August.

Meanwhile, the PSA reported that the value of production index (VaPI) for manufacturing rose 2.4 percent year-on-year in September, up from 1.6 percent in August, after recording a seven-percent decline in the same month of 2024.

The PSA emphasized that the faster year-on-year growth of VaPI for manufacturing in September was largely driven by the manufacture of computer, electronic, and optical products, which rose 5.1 percent, up from 1.1 percent in August.

This sector contributed 24.6 percent to the overall increase in VaPI for the manufacturing sector that month.

Other contributors to September’s faster manufacturing VaPI growth included the manufacture of coke and refined petroleum products, up 1.7 percent from a 6.8-percent decline in August; and the manufacture of transport equipment, which rose 12.1 percent from 6.6 percent.

The PSA added that the top contributors to the increase were the manufacture of food products, transport equipment, and computer, electronic, and optical products.

However, the PSA also noted that the annual growth rate of VaPI for food manufacturing slowed to 13.7 percent in September from 22.3 percent in August, after posting a 2.4-percent increase in the same month of 2024.

(Ricardo M. Austria)