Domestic factory output fell in November 2025, ending a three-month growth streak, as a deepening infrastructure corruption probe and weather disruptions weighed on production, the Philippine Statistics Authority (PSA) reported.

The PSA’s latest Monthly Integrated Survey of Selected Industries (MISSI), released Tuesday, Jan. 6, reported that the volume of production index (VoPI)—an indicator of factory output—dropped 1.5 percent year-on-year in November, reversing a one percent annual increase in October 2025. In the same month in 2024, manufacturing’s VoPI fell 4.5 percent. Year-to-date, VoPI was down 0.1 percent.

The PSA attributed the November decline mainly to slower growth in food manufacturing (4.2 percent from 8.1 percent in October) and manufacture of beverages (−2.8 percent from a 4.9 percent gain), as well as a steep drop in the manufacture of coke and refined petroleum products (−11.4 percent from −2.7 percent in October).

Other sectors contributing to the slowdown included manufacture of basic metals (−23.7 percent, slightly better than October’s −24.4 percent) and the manufacture of chemicals and chemical products (−28.7 percent from a 23.6 percent drop the previous month).

Within food manufacturing, the PSA noted that the manufacture of other food products fell 19.8 percent, manufacture of vegetable and animal oils and fats dropped 4.1 percent, and processing and preserving of meat grew only 7.2 percent.

Meanwhile, the value of production index (VaPI)—which measures output in monetary terms—declined 1.4 percent year-on-year in November, down from a 1.5 percent increase in October, though year-to-date VaPI rose 0.4 percent.

Food manufacturing, which accounts for nearly 28 percent of total manufacturing output, remained the largest contributor to the slowdown, posting only 4.3 percent growth, down from 8.6 percent in October. Other notable contributors included manufacture of coke and refined petroleum products (−8.4 percent) and manufacture of beverages (−3.5 percent).

Despite the decline in production, manufacturing input costs continued to rise for the fourth consecutive month in November, although the increase was slower than the previous month, with the producer price index (PPI) rising 0.1 percent year-on-year, down from 0.5 percent in October.

The PSA identified the manufacture of transport equipment industry, food manufacturing, and manufacture of computer, electronic, and optical products as key factors behind the slower PPI growth. Year-to-date, the PPI rose 0.4 percent, in line with VaPI growth.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp. (RCBC), said that manufacturing activity could improve in December but noted that political uncertainty since September 2025 has restrained infrastructure spending and weakened demand for industries linked to major projects.

“If anti-corruption measures and other priority governance reform measures are taken seriously, this could help improve overall economic growth, as well as some improvement on local manufacturing activities,” Ricafort said.

He added that the PPI remained benign, supported by relatively lower global commodity prices in recent months, but could rise in December due to seasonal holiday demand before easing again after the New Year.