Electronics manufacturing operation of EMS Group in its factory in Biñan, Laguna (PNA photo by Kris M. Crismundo)
Manufacturing activity in the Philippines gained traction in May 2025, with both output and capacity utilization on the rise, according to the Philippine Statistics Authority (PSA).
Data from the PSA’s Monthly Integrated Survey of Selected Industries showed that the Value of Production Index (VaPI) climbed by 4.5 percent, slightly up from April’s 4.3 percent and significantly higher than the 3.3 percent recorded in May last year.
The growth was largely driven by a robust performance in food manufacturing, which posted a 16.4 percent annual increase in May, up from 11.9 percent in April. A less steep drop in chemical manufacturing—13 percent compared to 23.3 percent the previous month—also supported the overall increase in production value.
Similarly, the Volume of Production Index (VoPI) expanded at a faster pace of 4.9 percent, improving from 4.3 percent in April and 4.2 percent in May 2024. The PSA attributed the acceleration to stronger outputs in food production and transport equipment, as well as a milder contraction in the chemical sector.
Manufacturing capacity also edged up, with the average utilization rate reaching 76.9 percent in May, slightly above April’s 76.7 percent. According to the PSA, all industry divisions reported utilization rates above 60 percent.
Leading the pack were:
- Non-metallic mineral products: 86.4%
- Tobacco products: 83.9%
- Leather and related products (including footwear): 82.7%
The latest figures suggest continued resilience in the manufacturing sector, bolstered by steady domestic demand and a rebound in key industries.