Manufacturing output rebounds in December
FACTORY output turned positive in December in both value and volume terms, the Philippine Statistics Authority (PSA) reported on Friday.The value of production index (VaPI) rose by 1.9 percent, rebounding from a 1.0-percent contraction in November and up from 0.3 percent growth a year ago.The volume of production index (VoPI) also bounced back from a 1.1-percent drop a month earlier to growth of 1.0 percent. IT was also better than the year-earlier growth of 0.5 percent.Year to date, VaPI remained positive at 0.4 percent, a turnabout from the 0.02-percent dip seen in 2024 but markedly slower than 2023’s 6.3 percent.VoPI, on the other hand, fell by 0.02 percent for the whole of 2025, reversing from the prior year’s 0.7 percent and the 4.9 percent in 2023.December’s VaPI gain was attributed to a faster increase in the manufacture of other nonmetallic mineral products, which grew by 29.5 percent from just 4.4 percent in the previous month.This sector contributed 23.2 percent to the month’s growth, the PSA said.Other major contributors to the VaPI increase were the manufacture of transport equipment (6.7 percent from 0.2 percent) and the manufacture of machinery and equipment except electrical (9.7 percent from -11.1 percent).Twelve other industry divisions saw expansions while declines were observed in seven.The VoPI, meanwhile, was also primarily driven by the manufacture of other nonmetallic mineral products (31.4 percent from 6.0 percent) along with the manufacture of food products (10.4 percent from 7.6 percent) and the manufacture of machinery and equipment except electrical (10.1 percent from -10.7 percent).Of the remaining industry divisions, 12 gained while seven posted declines.Average capacity utilization was 77.5 percent, slightly higher than November’s 77.4 percent and 76.1 percent a year ago.Of the 651 establishments that participated in the PSA’s Monthly Integrated Survey of Selected Industries, 228 — 35.0 percent — reported operating at full capacity (90-100 percent).Two hundred seventy-three, or 42.0 percent, operated at 70- to 89-percent capacity while the rest — 150 — operated below 70 percent.The Philippine Chamber of Commerce and Industry (PCCI) on Friday welcomed the rebound in manufacturing output, which President Perry Ferrer said “highlights the resilience of Philippine industries.”The business group also recognized the support provided by the Bangko Sentral ng Pilipinas via lower borrowing costs in December.“This move made it easier for manufacturers to access financing, expand production, and operate in a more favorable environment for manufacturing activity,” Ferrer said.The PCCI said it was optimistic about the sector this year as “continued government infrastructure projects, strong domestic consumption, and supportive monetary policy are expected to help sustain growth.”However, it said that “challenges such as rising global prices, supply chain constraints, and energy costs will need to be addressed.”
2026-02-06 16:19:00