Factory output in the Philippines experienced a decline in February 2025, with the value of production index (VaPI) falling by 1.6 percent, reversing the 3 percent growth observed in January. This drop contrasts with a 1.8 percent increase in February 2024.
Despite the February downturn, VaPI recorded a 0.7 percent growth for the first two months of 2025. The decline was largely driven by a sharp 35.6 percent annual decrease in the production of basic metals, compared to a 9.5 percent drop in January. Other significant factors included slower growth in machinery and equipment manufacturing, which dropped from 64.1 percent in January to 29.1 percent, and a faster decline in chemicals and chemical products, which decreased by 21.1 percent.
The volume of production index (VoPI) also saw a 2.4 percent decline from January and a contrast with the 3.2 percent growth seen in February 2024. For the first two months of 2025, VoPI decreased by 0.1 percent.
Despite the overall decline, the average capacity utilization in manufacturing remained steady at 75.9 percent, slightly down from January’s 76 percent but higher than February 2024’s 74.4 percent. The highest capacity utilization rates were observed in machinery manufacturing, equipment repair, and tobacco product manufacturing.