Factory output rises faster in May as key industries expand

The Philippines’ manufacturing sector posted faster growth in May, driven primarily by stronger output in the food and transport equipment industries, according to data from the Philippine Statistics Authority (PSA).

Results from the PSA’s Monthly Integrated Survey of Selected Industries showed that the Volume of Production Index (VoPI) rose by 4.9 percent in May, an acceleration from the 4.3 percent recorded in April and higher than the 4.2 percent expansion posted in May 2024.

Leading the surge was the food products industry, which saw a 15.7 percent increase in production, up from 11.2 percent in April. The transport equipment sector also performed strongly, growing by 13.5 percent in May from 7.4 percent the previous month.

The chemicals and chemical products industry helped ease the drag on manufacturing, posting a smaller contraction of 13.8 percent compared to a 23.8 percent decline in April.

Out of 22 industry divisions, 11 recorded production growth in May. These included computer, electronic and optical products; wood and related products; electrical equipment; tobacco; leather and footwear; basic metals; non-metallic mineral products; fabricated metal products; furniture; pharmaceuticals; and printing.

The remaining eight industries saw a decline in output, such as wearing apparel, paper and textiles, rubber and plastics, beverages, and refined petroleum products.

Average capacity utilization for manufacturing in May stood at 76.9 percent, slightly up from 76.7 percent in April and 75.2 percent a year ago. All industry divisions reported capacity utilization rates above 60 percent, with other non-metallic mineral products, tobacco, and leather goods reporting the highest rates.

Roughly 35 percent of establishments operated at full capacity during the month.