Factory output rebounds with 4.2% growth in April

The country’s manufacturing sector showed signs of recovery in April, with factory output returning to growth after a brief contraction the previous month, data from the Philippine Statistics Authority (PSA) showed.

According to the PSA’s Monthly Integrated Survey of Selected Industries (MISSI) released on June 6, the Volume of Production Index (VoPI) rose by 4.2 percent year-on-year in April 2025. This marked a turnaround from the 2-percent decline recorded in March, although it remained slower than the 7.3-percent expansion seen in April last year.

Out of the 21 industry groups covered in the survey, 11 posted year-on-year gains, led by food products, basic metals, and transport equipment manufacturing.

Food production, which forms a significant part of the manufacturing sector, grew by 11.2 percent compared to the same month last year. However, this was down from the 17.2-percent increase registered in March. The PSA attributed the slowdown to reduced output in several sub-sectors, particularly dairy products, which posted a 1.3-percent contraction after growing 12.4 percent in the previous month.

On the other hand, production of vegetable and animal oils and fats remained robust, with annual growth accelerating to 27 percent in April from 25 percent in March.

The Value of Production Index (VaPI), which measures the value of factory output, also rebounded with a 4.3-percent increase in April, reversing the 1.4-percent decline seen in March. However, this too was lower than the 6.5-percent growth recorded in April 2024.

Among the top-performing sectors in terms of value, basic metals led the pack with a 17.3-percent year-on-year growth, bouncing back from a steep 43.8-percent drop in March.

The latest data suggest a modest but broad-based recovery in manufacturing as the second quarter began, buoyed by strong performances in several key industries. However, analysts note that continued vigilance is needed amid varying sectoral trends and global headwinds.