PH factory output snaps 2-month growth streak

MANILA, Philippines – Local factory output snapped two straight months of growth to post a contraction in February, as manufacturers recalibrated their production after the holiday rush ended.

A monthly survey of selected industries showed the volume of production index (VoPI) —a measure of manufacturing output—fell by 2.4 percent year-on-year in the second month of 2025, the Philippine Statistics Authority (PSA) reported on Tuesday.

That ended a two-month growth streak that started at the height of the Christmas shopping season in December, when production was typically strong to meet the robust demand.

PSA data showed the decline in the VoPI was driven by a 36.5-percent slump in manufacture of basic metals, as well as the 27.9-percent contraction in manufacture of machinery and equipment.

The PSA also flagged the 22.5-percent decline in volume of finished chemicals and chemical products that came out of factories in February.

Interestingly, the manufacture of food products posted a faster VoPI growth of 11.9 percent, beating the January clip of 10.9 percent, as factories produced more animal feeds, preserved fruits and vegetables, as well as oils and fats.

Overall, the results of the PSA’s latest monthly poll of industries were consistent with the outcome of the Purchasing Managers’ Index (PMI) survey for February. The PMI—a separate gauge of factory activity—had moderated to 51 from 52.3 previously.

S&P Global, which releases the PMI data, had said that the robust growth observed from the end of 2024 into the beginning of this year had waned in February.