Electronics manuafcturing operation of EMS Group in its factory in Biñan, Laguna (PNA file photo by Kris M. Crismundo)
Factory activity in the Philippines continued to expand at the start of the year, though the pace of growth slowed slightly compared with the previous month, according to data released Friday by the Philippine Statistics Authority (PSA).
Results of the Monthly Integrated Survey of Selected Industries (MISSI) showed that the value of production index (VaPI) grew by 2.7 percent in January, marginally slower than the 2.8 percent expansion recorded in December 2025. The latest figure also trailed the 4.1 percent growth posted in January 2025.
The PSA said the softer growth was largely driven by a significant slowdown in the manufacture of food products, one of the sector’s key drivers. Output in the food manufacturing segment rose by just 0.8 percent in January, sharply easing from the 14.8 percent increase seen in December.
Production gains also moderated in several other industries. The manufacture of other non-metallic mineral products expanded by 5.4 percent, a sharp deceleration from the 30.2 percent growth recorded a month earlier. Meanwhile, output in transport equipment manufacturing edged up by only 0.7 percent, down from 7.1 percent in December.
The volume of production index (VoPI), another key gauge of factory activity, likewise posted slower growth. It increased by 1.2 percent in January, easing from the 2 percent expansion in December and the 3.2 percent growth recorded in the same month last year.
Despite the softer production figures, factories continued to operate at relatively high utilization levels. The PSA reported that the average capacity utilization rate for manufacturing establishments rose slightly to 77.8 percent in January from 77.6 percent in December.
All industry divisions recorded utilization rates above 60 percent during the month, indicating steady demand for manufacturing output. The highest utilization levels were seen in the manufacture of coke and refined petroleum products at 84.5 percent, followed by computer, electronic and optical products at 82.5 percent, and machinery and equipment except electrical at 81.4 percent.
The MISSI survey gathers monthly data on key indicators such as employment, compensation, production, net sales, inventories, and capacity utilization from selected manufacturing establishments across the country.
According to the PSA, the survey serves as a timely barometer for tracking the performance and momentum of growth-oriented industries within the country’s manufacturing sector.
