Factory production in the Philippines continued to grow in June, although the pace of expansion eased compared to the previous month, according to the latest report from the Philippine Statistics Authority (PSA).
The PSA’s Monthly Integrated Survey of Selected Industries showed that the value of production index (VaPI) increased by 1.8 percent year-on-year in June, a slower rate than May’s 3.1 percent and significantly lower than the 3.6 percent recorded in June 2024.
The agency attributed the slowdown mainly to a sharper annual decline in the production of basic metals, which dropped by 24 percent in June from 13.7 percent the previous month.
Also contributing to the deceleration were steeper year-on-year contractions in the manufacture of coke and refined petroleum products, which fell by 7.9 percent in June from 2 percent in May, and in the production of chemicals and chemical products, which dropped by 14 percent from 9.1 percent.
Meanwhile, the volume of production index (VoPI) rose by 2.2 percent in June, also down from 3.4 percent in May and 3.8 percent in June last year.
Similar to the VaPI, the VoPI slowdown was driven largely by a faster drop in the output of basic metals, down by 23.2 percent in June compared to 12.5 percent in May, alongside deeper contractions in the petroleum and chemical manufacturing segments.
The average capacity utilization rate among manufacturing firms fell slightly to 76.6 percent from 77 percent in May. Despite the dip, all industry divisions reported utilization rates above 60 percent.
Leading the pack were firms engaged in other manufacturing and repair and installation of machinery and equipment, which posted the highest utilization rate at 84.6 percent. They were followed by manufacturers of tobacco products at 81.9 percent and beverage producers at 81.8 percent.
