Philippine factory output growth slows in January

March 7, 2026 | 12:00am

MANILA, Philippines — Philippine manufacturing output grew at a slower pace at the start of the year, driven by the decline in food production.

Philippine Statistics Authority (PSA) data released yesterday showed that the Volume of Production Index (VoPI) for manufacturing registered a slower uptick of 1.2 percent in January from two percent in December 2025.

It was also slower than the 3.2 percent increase in January last year.

The data is based on the PSA’s Monthly Integrated Survey of Selected Industries.

PSA attributed the slower growth to the performance of three industry divisions: food products, non-metallic mineral products and transport equipment.

In particular, food production dipped by 0.5 percent in January, reversing the 14.9 percent increase in the previous month.

Meanwhile, production of other non-metallic mineral products registered a slower growth rate of 6.8 percent in January from 32.4 percent in December 2025.

Manufacture of transport equipment contracted by 1.9 percent in January from a 5.8-percent increment in the previous month.

Of the remaining 19 industry divisions, 11 posted annual increases, while eight industry divisions registered declines in VoPI in January.

Industry divisions that registered growth are computer, electronic and optical products; beverages; electrical equipment; wood, bamboo, cane, rattan articles and related products; wearing apparel; other manufacturing and repair and installation of machinery and equipment; tobacco products; furniture; textiles; paper and paper products; and leather and related products, including footwear.

On the other hand, those that saw declines are printing and reproduction of recorded media; basic pharmaceutical products and pharmaceutical preparations; machinery and equipment except electrical; fabricated metal products, except machinery and equipment; chemicals and chemical products; rubber and plastic products; coke and refined petroleum products and basic metals.

Average capacity utilization rate for the manufacturing sector was 77.8 percent in January, up from the previous month’s 77.6 percent and 76.2 percent in January last year.

“All industry divisions reported capacity utilization rates of more than 60 percent during the month,” PSA said.

Industry divisions with the highest reported capacity utilization rate in January were coke and refined petroleum products at 84.5 percent; computer, electronic and optical products at 82.5 percent and machinery and equipment except electrical at 81.4 percent. 

Of the total survey respondents, 28.5 percent operated at full capacity (90 percent to 100 percent).

Meanwhile, 42.6 percent were running at 70 to 89 percent capacity and 28.9 percent operated below 70 percent capacity.