Despite storms and weather disturbances, domestic factory output maintained growth in October, with both production volume and value posting growth for the third consecutive month, according to the Philippine Statistics Authority (PSA).

The PSA’s latest monthly integrated survey of selected industries (MISSI), released Tuesday, Dec. 9, reported that the volume of production index (VoPI)—an indicator of factory output—rose by 1.4 percent in October, higher than the 0.8-percent growth recorded in September.

By comparison, VoPI recorded a 1.2-percent year-on-year decline in the same month last year. The year-to-date figure also showed a decrease of 0.3 percent for the period.

According to the PSA, the acceleration in the year-on-year growth of VoPI for manufacturing in October was mainly driven by the manufacture of computer, electronic, and optical products, which surged to 18 percent from 4.2 percent in the previous month.

Other industry divisions that contributed to the annual increase in VoPI for manufacturing, the PSA reported, included the manufacture of chemicals and chemical products, which posted a smaller annual decline of 24.3 percent, from 32.3 percent in September, and the manufacture of wood, bamboo, cane, and rattan articles and related products, which registered a 15.8-percent annual increase in October, rebounding from a 5.7-percent decrease in the previous month.

The PSA also said that growth in VoPI for the manufacturing sector was supported by several industry divisions, including the manufacture of food products and the manufacture of basic pharmaceutical products and preparations.

However, the PSA reported that annual VoPI growth for the manufacture of food products slowed to nine percent in October, down from 14.1 percent in September, but still higher than the 4.7-percent increase recorded in October 2024.

The PSA attributed the slowdown in VoPI growth for food manufacturing to the manufacture of other food products, which saw an annual decline of 2.9 percent in October, reversing a 10.5-percent increase in September.

Meanwhile, the PSA reported that the manufacturing sector’s value of production index (VaPI) rose by 1.7 percent in October, slightly up from 1.6 percent in September. In comparison, October 2024 saw VaPI for manufacturing decline by 1.6 percent year-on-year.

The PSA reported that the annual growth of manufacturing VaPI in October was largely driven by the same industry divisions that boosted VoPI. Notably, the manufacture of computer, electronic, and optical products surged 16.8 percent during the month, up from 4.8 percent in September, contributing 60.1 percent to the overall increase in manufacturing VaPI and holding the second-highest weight in its computation.

The PSA added that other contributors to the growth of manufacturing VaPI in October were the slower decline in the manufacture of chemicals and chemical products at 23.5 percent and the rebound in the manufacture of wood, bamboo, cane, and rattan articles and related products, which rose 15.1 percent.

It also noted that, similar to VoPI, the annual growth of manufacturing VaPI in October was supported by the manufacture of food products and the manufacture of basic pharmaceutical products and preparations.

As for VaPI for food manufacturing, PSA data showed that it also slowed to 9.4 percent in October, down from 14.9 percent in September. In October 2024, the sector had recorded a 6.5-percent annual increase.

The PSA attributed the slowdown in VaPI for food manufacturing in October to the manufacture of other food products, which fell 1.5 percent year-on-year, down from a 12.2-percent rise in September. This group includes bakery products, sugar, and condiments.

(Ricardo M. Austria)