Manila: Factory output dropped in February this year, preliminary data released by the Philippine Statistics Authority (PSA) on Tuesday showed. Preliminary results of the latest Monthly Integrated Survey of Selected Industries indicated that the value of production index (VaPI) fell by 1.6 percent in February, marking a turnaround from the 3 percent expansion seen in January this year. In February last year, VaPI rose by 1.8 percent. Despite the latest contraction, the VaPI grew by 0.7 percent for the first two months of the year.
According to Philippines News Agency, the PSA reported that the downtrend in the annual rate of VaPI for manufacturing in February 2025 was mainly attributed to the faster annual decrease in the manufacture of basic metals at 35.6 percent during the month from an annual decrement of 9.5 percent in the previous month. Other primary contributors to the downtrend were the slower annual increase in the manufacture of machinery and equipment except electrical at 29.1 percent from 64.1 percent in January 2025, and the faster annual decline of manufacture of chemicals and chemical products at 21.1 percent from -1.2 percent in the previous month.
The volume of production index (VoPI) also declined by 2.4 percent from a 2.3 percent in January this year and 3.2 percent expansion in February 2024. For the first two months of the year, VoPI contracted by 0.1 percent. The PSA attributed the decline to the decrease in the manufacture of basic metals, machinery and equipment except electrical, and chemicals and chemical products.
The average capacity utilization rate for the manufacturing section was reported at 75.9 percent, a slight dip from the 76 percent average capacity utilization rate in the previous month. In February 2024, the average capacity utilization rate was lower at 74.4 percent. "All industry divisions reported capacity utilization rates of more than 60 percent during the month," the PSA stated. The top three industry divisions in terms of reported capacity utilization rate were manufacture of machinery and equipment except electrical at 83.7 percent, other manufacturing and repair and installation of machinery and equipment at 81.5 percent, and manufacture of tobacco products at 79.6 percent.
