Philippine factory output hits 6-month high as food, machinery surge
Philippine manufacturing output continued growing at a faster rate in January 2025, posting the quickest expansion in six months, according to the Philippine Statistics Authority (PSA).
This was driven by a rebound in food production, which also hit a six-month high; strong growth in machinery and equipment; and a narrower decline in basic metals, the PSA's latest Monthly Integrated Survey of Selected Industries (MISSI) report on Friday, March 7, showed.
Factory output, as measured by the volume of production index (VoPI), increased by 2.8 percent at the start of the year. This is six times the 0.4 percent growth seen in December, which also recovered from its November decline.
Factory output growth in January was the highest seen after last year’s peak in July 2024, at 7.4 percent.
This also reversed the annual decline of 0.3 percent seen in January last year.
Specifically, the faster manufacturing growth in January was driven by a 9.4 percent increase in food production, a sharp rebound from the 0.3 percent decline in December.
Other major contributors were the lower 2.4 percent dip in basic metals, which improved from a massive 19.5 percent drop; and the 62.1 percent surge in machinery and equipment, which increased further from the 40.9 percent in December.
These were the same top three industry divisions that contributed to the uptrend of the manufacturing sector’s total production value.
The value of production index (VaPI) for manufacturing recorded growth of four percent, improving from the 0.4 increase posted in December last year.
Similarly, the sector’s total sales revenue—as measured by value of net sales index (VaNSI)—grew 7.1 percent, increasing further from 6.7 percent in December. The PSA said this was driven by massive increases in basic metals, electrical equipment, and beverages.
Meanwhile, the growth in volume of net sales index (VoNSI) slowed slightly from 6.6 percent in December to 6.3 percent in January.
According to the PSA, this slowdown was driven by the 7.5 percent drop in computer, electronic, and optical products, reversing the 14.3 percent gain in December.