Manufacturing posts strongest growth in 10 months, spurs job creation

A modern manufacturing facility showcasing production equipment and machinery in a well-organized layout.

The country’s manufacturing sector reached its highest growth rate in ten months this May, according to the Department of Trade and Industry (DTI), signaling renewed economic momentum and brighter employment prospects for Filipinos.

Based on preliminary figures from the Philippine Statistics Authority (PSA), the volume of production index (VoPI)—a key measure of factory output—increased by 4.9 percent year-on-year in May 2025. This marks a continued acceleration from April’s 4.3 percent growth.

DTI Secretary and Board of Investments (BOI) Chairperson Cristina A. Roque said the improvement reflects strong investor confidence and growing demand in key markets, which are expected to support further job creation.

“The continued rise in manufacturing output shows we are successfully tapping into expanding markets while opening more opportunities for Filipinos to earn a decent living,” said Roque.

The surge was led by a 15.7 percent rise in food manufacturing, up from 11.2 percent in April. The transport equipment segment also saw notable gains, nearly doubling its April growth to 13.5 percent.

Complementing these figures, S&P Global recently reported an uptick in the country’s Manufacturing Purchasing Managers’ Index (PMI), which rose to 50.7 in June from 50.1 in May. A PMI above 50 indicates improving operating conditions.

This sustained momentum is being reflected in investment figures. The BOI approved ₱15.02 billion worth of manufacturing projects in the first half of 2025, which are expected to create more than 5,000 new jobs.

Roque emphasized that the link between rising output and employment is clear: “When factories ramp up production, they need more hands on deck. This directly fuels economic growth and provides more livelihood opportunities for our people.”

The DTI and BOI reaffirmed their commitment to strengthening the country’s industrial base, aiming to position the Philippines as a regional hub for innovative, sustainable, and competitive manufacturing.

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