● The Philippine manufacturing sector saw slower growth in June 2025 due to faster decline in the manufacture of basic metals
● Year-on-year, the value of production index grew 1.8% while the volume of production index rose 2.2%
● Faster decline in the manufacture of basic metals primarily contributed to the slowdown in overall manufacturing
The Philippine manufacturing sector saw slower growth in June 2025, according to data from the Philippine Statistics Authority (PSA).
In PSA’s latest Monthly Integrated Survey of Select Industries, the value of production index (VaPI) advanced 1.8% year-on-year in June 2025, slower than the 3.1% hike in May 2025 and 3.6% increase in June 2024.
The volume of production index (VoPI) likewise rose 2.2% in June 2025 from a 3.4% and 3.8% growth in May 2025 and June 2024, respectively.
The slowdown in the annual rate of VaPI was mainly attributed to the faster annual decline in the manufacture of basic metals at 24%, contributing 32.6% in the downtrend of VaPI for the period.
Also contributing to the downtrend was the slower growth in the manufacture of coke and refined petroleum products, and of chemicals and chemical products.
Out of the 19 other industry divisions, 14 industry divisions exhibited annual increments, while the other five posted annual declines in their VaPI during the period.
For VoPI, the deceleration was also primarily driven by the same top three industry divisions that contributed to the downturn in VaPI during the period.
The manufacture of basic metals saw a faster annual drop of 23.2% in June, while the manufacture of coke and refined petroleum products, and of chemicals and chemical products both recorded faster declines.
Of the remaining 19 industry divisions, 14 posted annual increments while five industry divisions exhibited annual decreases in their VoPI during the period.
The top three industry divisions contributing to the overall year-on-year growth of VaPI and VoPI in June 2025 were the manufacture of food products, transport equipment, and computer, electronic and optical products.
The value of net sales index (VaNSI), meanwhile, registered a slower year-on-year increment of 5.4% in June 2025 from 6.1% in May 2025, but faster than the 2.9% in June 2024.
The volume of net sales index (VoNSI) likewise slowed to a 5.9% increase in June relative to the 6.5% hike in May 2025 but faster than the 3.1% growth in June 2024.
For both VaNSI and VoNSI, the annual drop in the manufacture of basic metals primarily contributed to the slowdown in growth.
Based on MISSI’s responding establishments, the average capacity utilization rate for the manufacturing sector in June 2025 was reported at 76.6% from 77% in May 2025.
All industry divisions reported capacity utilization rates of more than 60% during the month.
The top three industry divisions in terms of reported capacity utilization rate were other manufacturing and repair and installation of machinery and equipment at 84.6%, tobacco products at 81.9%, and beverages at 81.8%.
