The country’s factory output showed a slight improvement in March, according to the Philippine Statistics Authority (PSA), signaling a modest recovery in the manufacturing sector.
Preliminary results of the latest Monthly Integrated Survey of Selected Industries showed that the value of production index (VaPI) rose by 0.4 percent in March, reversing the -0.6 percent seen in February. This is also an improvement from the -6.2 percent contraction recorded in the same month last year.
“The uptrend in the annual growth rate of VaPI for manufacturing in March 2025 was mainly attributed to the faster annual increase in the manufacture of food products at 19.2 percent during the month from an annual increment of 13.9 percent in the previous month,” the PSA said.
The annual increase in the manufacture of transport equipment, computer, electronic and optical products also contributed to the VaPI expansion in March.
Meanwhile, the volume of production index (VoPI) recorded a slower contraction of 0.2 percent in March this year from -1.5 percent in February.
In March 2024, VoPI posted a sharper drop of -5.1 percent.
The PSA said the increase in the manufacture of food products, computer, electronic and optical products helped slow the contraction in the VoPI in March.
Meanwhile, the average capacity utilization rate for the manufacturing section was reported at 76.2 percent, up from the 75.9 percent average capacity utilization rate in the previous month.
“All industry divisions reported capacity utilization rates of more than 50.0 percent during the month,” the PSA said.
The top three industry divisions in terms of reported capacity utilization rate were the manufacture of machinery and equipment except electrical at 85 percent, the manufacture of food products at 80.5 percent, and other manufacturing and repair and installation of machinery and equipment at 80.3 percent. (PNA)
