Factory output hit 4-yr high in April

MANILA, Philippines – Philippine manufacturing output grew at its fastest pace in more than four years in April, driven largely by a surge in refined petroleum production amid the ongoing conflict in the Middle East.

Data released by the Philippine Statistics Authority (PSA) on Friday showed that the Volume of Production Index—a measure of factory output—increased by 12 percent year-on-year in April, faster than the revised 10.2-percent growth recorded in March.

READ: Pre-Middle East crisis: Philippine factory output rebounds

The April reading marked the strongest expansion since March 2022, when manufacturing output surged 346.05 percent as industries rebounded from the low base created by the pandemic.

The acceleration was primarily driven by the manufacture of coke and refined petroleum products, which posted a 52.7-percent annual increase in April, a sharp turnaround from the 3.4-percent contraction recorded in March.

However, Leonardo Lanzona, an economist at Ateneo de Manila University, cautioned against interpreting the latest figures as a sign of a broad-based manufacturing recovery.

“It is a petroleum-driven outlier, due to surge and inventory restocking, rather than a broad manufacturing revival. The base comparison is also favorable—April 2025 posted a 2.4-percent contraction—so the year-on-year arithmetic was always going to flatter April 2026,” he said.

The PSA’s production data contrasted with the manufacturing survey from S&P Global, which showed that the Philippines’ Purchasing Managers’ Index (PMI) fell to 48.3 in April from 51.3 in March, slipping below the 50-point threshold that separates expansion from contraction.

READ: PH manufacturing activity rebounds in May

S&P Global attributed the decline to a sharp drop in new orders and subdued export demand, indicating weaker business conditions across the manufacturing sector.

According to Lanzona, the PMI appears to be the “more reliable gauge of where the manufacturing sector actually stands.”

Aside from petroleum products, the manufacture of food products also contributed to April’s growth, with output expanding by 8.2 percent from 7.1 percent in March.

Meanwhile, the manufacture of computer, electronic and optical products remained among the top contributors despite its growth slowing to 14.1 percent from 18.1 percent in the previous month.

Overall, 15 of the 22 industry divisions were in positive territory during the month, while seven recorded declines, underscoring the uneven nature of the sector’s recovery. INQ