Factory output continues growth streak in June

Manufacturing output sustained its growth momentum in June 2025, although at a slightly slower pace than in the previous month, according to the latest data released by the Philippine Statistics Authority (PSA) on Thursday.

Results from the PSA’s Monthly Integrated Survey of Selected Industries showed that the value of production index (VaPI) increased by 1.8 percent year-on-year in June, lower than the 3.1 percent in May and the 3.6 percent recorded in June 2024.

“The deceleration in the annual rate of VaPI for manufacturing in June 2025 was mainly attributed to the faster annual decline in the manufacture of basic metals at 24 percent during the month from 13.7 percent in the previous month,” the PSA said.

Other contributors to the slowdown include steeper drops in the manufacture of coke and refined petroleum products (down 7.9 percent from 2 percent in May), and chemicals and chemical products (down 14 percent from 9.1 percent).

Meanwhile, the volume of production index (VoPI) also expanded, posting a 2.2 percent growth in June, though slower compared to the 3.4 percent in May and 3.8 percent in June last year.

The PSA noted that the manufacturing sector’s average capacity utilization rate was at 76.6 percent, slightly down from 77 percent the month before. All industry divisions maintained capacity utilization rates above 60 percent.

Leading the pack in terms of capacity were:

• Other manufacturing and repair and installation of machinery and equipment – 84.6%

• Manufacture of tobacco products – 81.9%

• Manufacture of beverages – 81.8%

Despite the moderation in growth, the sector continues to show resilience amid global and domestic headwinds, with analysts closely watching whether recovery in key industries can boost second-half performance.