Factory output tumbles in February

MANILA, Philippines — Manufacturing output contracted in February, driven by the slower production of basic metals, machinery and chemicals, according to the Philippine Statistics Authority.

Preliminary results of the Monthly Integrated Survey of Selected Industries released by the PSA yesterday showed that the Volume of Production Index (VoPI) for manufacturing registered a 2.4-percent decline in February from the previous month’s 2.3-percent increase and 3.2-percent uptick in February 2024.

The PSA attributed the downtrend to the performance of three industry divisions.

The manufacture of basic metals registered a bigger contraction of 36.5 percent in February from a 10.7-percent decline in January.

Machinery and equipment, except electrical, posted a slower increase of 27.9 percent in February from the previous month’s 60.6 percent growth.

Manufacture of chemicals and chemical products registered a 22.5-percent drop in February from the 3.5 percent contraction in January.

Other industry divisions that posted declines in February were computer, electronic and optical products; basic pharmaceutical products and pharmaceutical preparations; coke and refined petroleum products; rubber and plastic products; and transport equipment.

Meanwhile, those with growth rates in February include printing and reproduction of recorded media; other manufacturing and repair and installation of machinery and equipment; wearing apparel; paper and paper products; textiles; leather and related products, including footwear; fabricated metal products, except machinery and equipment; furniture; wood, bamboo, cane, rattan articles and related products; tobacco products; other non-metallic mineral products; beverages; electrical equipment; and food products.

Based on responding establishments, the PSA said the average capacity utilization rate for manufacturing in February 2025 was reported at 75.9 percent from the previous month’s 76 percent and 74.4 percent in February last year.

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

Industry divisions with the highest reported capacity utilization are machinery and equipment except electrical (83.7 percent); other manufacturing and repair and installation of machinery and equipment (81.5 percent); and tobacco products (79.6 percent).