MANUFACTURING output, both in value and volume, posted slower growth in May from a month earlier, Philippine Statistics Authority (PSA) data showed on Tuesday.
The value of production index (VaPI) slowed to 13.5 percent after expanding by 14.6 percent in April, based on the PSA’s latest Monthly Integrated Survey of Selected Industries (Missi). It rebounded, however, from the year-earlier contraction of 0.5 percent.
The volume of production Index (VoPI) also eased to 10.2 percent from 11.7 percent but rose from than May 2025’s -0.3 percent.
Both growth rates were the slowest since February 2025’s 4.7 percent and 3.5 percent, respectively.
The PSA attributed the lower VaPI to markedly slower growth in the manufacture of transport equipment: 0.9 percent from 12.6 percent in the previous month.
This contributed 42.0 percent to the decline in the VaPI growth rate for the month.
The manufacture of transport equipment had the third-highest weight in the computation of the VaPI among the 22 manufacturing industry divisions.
Other major contributors to the lower VaPI growth were a slower annual increase in the manufacture of food products (3.1 percent from 6.1 percent) and a decline in the manufacture of chemicals and chemical products (-11.5 percent from 1.0 percent).
The manufacture of transport equipment was also the reason for the lower VoPI, posting a 1.4-percent fall in May from a 9.8-percent gain in April.
Also contributing to the decline were the manufacture of food products (slower growth of 1.7 percent from 4.5 percent) and the manufacture of chemicals and chemical products (down 14.8 percent from growth of 2.1 percent).
The average capacity utilization rate for manufacturing, meanwhile, edged up to 78.8 percent in May from 77.5 percent a month earlier. It is also higher than the 77.1 percent recorded in May 2025.
All industry divisions reported operating at over 65.0 percent of capacity, led by leather and related products (84.5 percent), coke and refined petroleum products (82.5 percent), and computer, electronic and optical products (81.2 percent).
The 251 firms that operated at full capacity, defined as 90 to 100 percent, accounted for over a third (36.1 percent) of the Missi respondents.
A total of 283 (40.6 percent), meanwhile, reported operating at 70-80 percent of capacity and 162 (23.3 percent) said they operated below 70 percent.
