Factory output posts faster growth in March

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May 8, 2026 | 12:00am

MANILA, Philippines —  Manufacturing output growth picked up pace in March despite the impact of the Middle East conflict.

Preliminary results of the Monthly Integrated Survey of Selected Industries released by the Philippine Statistics Authority (PSA) showed the Volume of Production Index (VoPI) for manufacturing posted a faster growth of 7.8 percent in March compared to the previous month’s 3.1 percent.

This was also a turnaround from the 0.6-percent contraction booked in March 2025.

The Philippines posted faster VoPI growth even as the Middle East conflict has affected the economy through higher prices.

The PSA attributed the faster VoPI growth for manufacturing in March to three industry divisions: coke and refined petroleum products, basic metals and transport equipment.

The manufacture of coke and refined petroleum products registered a slower decline of 4.4 percent in March from the previous month’s 19.5 percent.

Basic metals production posted a faster growth rate of 36.2 percent in March from 28.2 percent in February.

The manufacture of transport equipment also registered a faster increment of 6.3 percent in March from 1.2 percent in the previous month.

Of the remaining 19 industry divisions, 13 posted increases in VoPI in March. These include computer, electronic and optical products; food products; furniture; electrical equipment; other non-metallic mineral products; wood, bamboo, cane, rattan articles and related products; basic pharmaceutical products and pharmaceutical preparations; rubber and plastic products; beverages; wearing apparel; leather and related products, including footwear; tobacco products and textiles.

Meanwhile, six industry divisions saw decreases in their VoPI in March including other manufacturing and repair and installation of machinery and equipment; printing and reproduction of recorded media; paper and paper products; machinery and equipment except electrical; fabricated metal products; and chemicals and chemical products.

The average capacity utilization rate for manufacturing was reported at 78.5 percent in March, up from 77.6 percent in February.

“All industry divisions reported capacity utilization rates of more than 65 percent during the month,” the PSA said.

Top industries in terms of reported capacity utilization rate in March were coke and refined petroleum products at 84.4 percent, machinery and equipment at 82.3 percent other manufacturing and repair and installation of machinery and equipment at 81.8 percent.

Around 34.8 percent of establishments operated at full capacity or 90 to 100 percent in March.

Meanwhile, 40.8 percent operated at 70 to 89 percent capacity and 24.5 percent were running below 70 percent capacity.