Manila: The Philippines' factory output experienced a significant expansion in April, overcoming disruptions caused by the ongoing Middle East conflict, as reported by the Philippine Statistics Authority (PSA) on Friday. The PSA's Monthly Integrated Survey of Selected Industries indicated a notable increase in both the value and volume of production indices for the month.
According to Philippines News Agency, the value of production index (VaPI) saw a robust annual increase of 14.7 percent in April, up from 13.1 percent in March. This marks a significant recovery from the 2.2 percent contraction observed in April of the previous year. The PSA attributed this accelerated growth to a substantial surge in the manufacture of coke and refined petroleum products, which grew by 60.8 percent in April, compared to 4.6 percent in March. Additionally, 15 other industry divisions reported annual growth, while six divisions experienced contractions in VaPI.
Further contributing to the year-on-year VaPI growth were the manufacturing sectors of computer, electronic, optical, and food products. Meanwhile, the volume of production index (VoPI) also demonstrated positive growth, increasing by 12 percent in April from 10.2 percent in March 2026. This represents a reversal from the 2.4 percent contraction recorded in April 2025. The VoPI's growth was largely driven by a strong rebound in the manufacture of coke and refined petroleum products, surging by 52.7 percent from a 3.4 percent decline in March 2026.
On the other hand, the value of net sales index (VaNSI) exhibited a slower year-on-year increase of 6.8 percent in April, compared to 8 percent the previous month. In April 2025, the VaNSI for manufacturing had risen by 6.3 percent. The slowdown in growth was attributed to a reduced annual increase in the manufacture of food products, which grew by 5.5 percent in April compared to 12.2 percent in March. The PSA pointed out that the manufacture of food products accounted for 41.1 percent of the deceleration in VaNSI's annual growth rate for the manufacturing sector.
Additional contributors to the slowdown included a decline in the manufacture of chemicals and chemical products, which fell by 10.9 percent in April 2026 from a 4.2 percent growth in the previous month. Additionally, the annual increase in the manufacture of other non-metallic mineral products slowed to 4.7 percent in April, down from 12.3 percent in March 2026.
The capacity utilization rate for the manufacturing sector stood at 78.4 percent, slightly down from 78.6 percent in March, but still higher than the 76.5 percent recorded in April 2025. Approximately one-third of the 623 responding establishments operated at a capacity of 90 percent to 100 percent during the month. The top three industry divisions in terms of reported capacity utilization rate were the manufacture of coke and refined petroleum products at 91.8 percent, the manufacture of leather and related products, including footwear, at 82.6 percent, and other manufacturing and repair and installation of machinery and equipment at 81.8 percent.
