Philippine manufacturing output grew at a slower pace last year, hampered by several production declines, according to the Philippine Statistics Authority (PSA).
While the manufacturing sector saw growth in the second and third quarters of 2024, significant contractions in March (-4.9 percent), September (-5.5 percent), and November (-3.9 percent) dragged down the overall growth rate for the year.
Factory output growth averaged 0.9 percent from January to December 2024, compared to three percent growth in the previous year.
The Value of Production Index (VaPI) for manufacturing grew by an average of 0.2 percent in 2024, significantly slower than the 3.7 percent increase in 2023.
Conversely, the Value of Net Sales Index (VaNSI) for manufacturing grew by an average of 1 percent in 2024, rebounding from a 1.1 percent decline in 2023. Notable growth was observed in April (9.1 percent), July (5.8 percent), and December (6.3 percent).
The Volume of Net Sales Index (VoNSI) also increased by 1.7 percent in 2024, reversing a 1.7 percent decrease in 2023.
However, producer selling prices grew by only 0.6 percent in 2023, a 1.3 percent decline from the 0.7 percent growth rate in 2024.
December 2024 growth
Preliminary PSA data show that manufacturing output accelerated in December 2024, rebounding from a decline in November.
The December increase was driven by strong growth in computer and electronic products, coke and refined petroleum, and transport equipment manufacturing, the PSA reported.
The Volume of Production Index (VoPI) for manufacturing rose by 0.2 percent in December, following a 3.9 percent decrease in November.
The total value of production increased by 0.4 percent year-on-year in December, after decreasing by 3.5 percent in November. This was fueled by an 8.6 percent rebound in computer, electronic, and optical products, which contributed 35.2 percent to the sector’s growth.
Total sales also accelerated to 6.5 percent growth in December, up from 3.9 percent in November.
The December sales surge was driven by an 18.4 percent jump in computer, electronic, and optical products, contributing 53.7 percent to the sector's growth.