Manila: Factory output growth accelerated in August, reversing the contraction seen in the previous month, data released by the Philippine Statistics Authority (PSA) on Tuesday showed. Results of the Monthly Integrated Survey of Selected Industries highlighted a 2 percent growth in the value of production index (VaPI) for August, marking a turnaround from the -1.9 percent recorded in July.

According to Philippines News Agency, the uptrend in the VaPI for manufacturing in August 2025 was largely driven by the faster annual increase in the manufacture of food products, which surged to 21.0 percent compared to 12.0 percent in the previous month. Additionally, the manufacture of basic metals recorded a slower annual decrease, at 7.8 percent from 26.5 percent in the prior month. Similarly, the manufacture of coke and refined petroleum products saw a decline of 6.8 percent in August, improving from 11.4 percent in July, contributing to the higher VaPI.

The volume of production index (VoPI) also demonstrated growth, increasing by 1.4 percent after a 1.8 percent decline in July. The PSA attributed this acceleration in VoPI to the higher increase in the manufacture of food products and machinery and equipment, alongside a slower annual decline in basic metals.

The PSA further reported that the average capacity utilization rate for manufacturing slightly rose to 77.3 percent from 77.2 percent in July. All industry divisions achieved capacity utilization rates exceeding 60 percent during the month. The top three industry divisions in terms of reported capacity utilization were manufacture of tobacco products at 85.8 percent, manufacture of coke and refined petroleum products at 82.8 percent, and manufacture of beverages at 81 percent.