Manila: Factory output in the Philippines continued to expand in May, but growth in both production volume and value lost momentum from the previous month, the Philippine Statistics Authority (PSA) reported. Results of the Monthly Integrated Survey of Selected Industries (MISSI) released Tuesday indicated that the value of production index (VaPI) grew by 13.5 percent in May, a reversal from the -0.5 percent recorded in May last year.
According to Philippines News Agency, the slowdown in the annual growth rate of VaPI for manufacturing in May 2026 was mainly attributed to the slower annual increase posted by the manufacture of transport equipment at 0.9 percent during the month from 12.6 percent in the previous month. The slowdown in the Value of Production Index (VaPI) was driven in part by the slower growth in food manufacturing, which eased to 3.1 percent in May from 6.1 percent in April, as well as the reversal in the manufacture of chemicals and chemical products, which contracted 11.5 percent after posting a 1-percent increase in the previous month.
Meanwhile, the volume of production index (VoPI) rose by 10.2 percent, slower than the 11.7 percent growth seen in April. In May last year, the VoPI contracted by 0.3 percent. The slower growth in the Volume of Production Index (VoPI) was also attributed to the 1.4-percent contraction in the manufacture of transport equipment, the deceleration in food manufacturing, and the steeper decline in the manufacture of chemicals and chemical products.
Based on the responding establishments, the average capacity utilization rate for manufacturing went up to 78.8 percent in May from 78.5 percent in April this year. All industry divisions reported a capacity utilization rate of more than 65 percent during the month. The top three industry divisions in terms of reported capacity utilization rate were the manufacture of leather and related products, including footwear, at 84.5 percent; the manufacture of coke and refined petroleum products at 82.5 percent; and the manufacture of computer, electronic, and optical products at 81.2 percent.
