Factory output expands in January

Factory output in the Philippines posted faster growth in January, both in volume and value, according to the Philippine Statistics Authority (PSA).

Data released on Friday showed that the value of production index (VaPI) increased by 4 percent in January, a significant improvement from the 0.4 percent growth recorded in December 2024. 

This also marked a turnaround from the -1.4 percent contraction in January last year. The PSA attributed this acceleration to the annual increase in the manufacture of food products, which rose by 9.3 percent in January from 1.4 percent in the previous month. 

Additionally, the slower decline in the manufacture of basic metals and the faster growth in the manufacture of machinery and equipment (except electrical) contributed to the overall increase in VaPI.

Meanwhile, the volume of production index (VoPI) rose by 3.2 percent in January, surpassing the 0.4 percent growth in December last year. In comparison, VoPI recorded a 0.3 percent decline in January 2024. 

The PSA pointed to the faster growth in the manufacture of food products, basic metals, and machinery and equipment as key factors in this improvement.

The average capacity utilization rate for the manufacturing sector slightly increased to 75.9 percent in January, up from 75.6 percent in December. A year earlier, it stood at 74.5 percent. 

The PSA noted that all industry divisions reported capacity utilization rates of more than 60 percent during the month. Among them, printing and reproduction of recorded media had the highest utilization rate at 83.3 percent, followed by the manufacture of other non-metallic mineral products at 82.0 percent and other manufacturing and repair and installation of machinery and equipment at 80.7 percent.