Factory output recovers in August

MANILA, Philippines — The Philippine manufacturing sector rebounded in August, with output returning to positive territory, driven by the performance of the food and metals sectors.

Preliminary data released by the Philippine Statistics Authority (PSA) yesterday showed that the Volume of Production Index (VoPI) for manufacturing posted a 1.4-percent increment in August from a 1.8-percent contraction in July.

VoPI growth in August was also slightly faster than the 1.3-percent uptick in the same month last year.

The PSA said the uptrend was primarily due to food products, which accelerated by 20.2 percent in August from the previous month’s 11.4 percent.

Basic metals, which registered a slower decline of 9.6 percent in August from 26.8 percent in the previous month, also contributed to the latest VoPI growth.

Another major driver of the VoPI growth was machinery and equipment, which posted a 6.7-percent increase in August from a 3.1-percent contraction in July.

Of the remaining 19 industry divisions, nine posted positive VoPI growth in August. These are: transport equipment; electrical equipment; tobacco products; other non-metallic mineral products; other manufacturing and repair and installation of machinery and equipment; wood, bamboo, cane, rattan articles and related products; computer, electronic and optical products; leather and related products including footwear; and fabricated metal products except machinery and equipment.

On the other hand, the following registered declines in VoPI in August: furniture; printing and reproduction of recorded media; textiles; basic pharmaceutical products and pharmaceutical preparations; rubber and plastic products; wearing apparel; paper and paper products; beverages; coke and refined petroleum products; and chemicals and chemical products.

Based on responding establishments, the average capacity utilization rate for manufacturing in August was reported at 77.3 percent, up slightly from the previous month’s 77.2 percent in July 2025.

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

The top three industry divisions in terms of reported capacity utilization rate in August were tobacco products (85.8 percent); coke and refined petroleum products (82.8 percent); and beverages (81 percent).

Around 42.6 percent of establishments operated at full capacity or 90 percent to 100 percent in August.

Meanwhile, 34.7 percent were running at 70 to 89 percent capacity and 22.7 percent were below 70 percent capacity.