- The Philippine manufacturing sector started the year off with continued but slower improvement in its production indexes
- The volume of production index recorded a slower year-on-year increase of 1.2% while the value of production index slowed to a 2.7% growth
- The average capacity utilization rate for the manufacturing section in January 2026 was reported at 77.8%, slightly higher than the 77.6% in December 2025 and 76.2% in January 2025
The Philippine manufacturing sector started the year off with continued but slower improvement in its production indexes, according to data from the Philippine Statistics Authority (PSA).
The volume of production index (VoPI) in January 2026 recorded a slower year-on-year increase of 1.2% from 2% in December 2025 and 3.2% in January 2025, according to PSA’s latest Monthly Integrated Survey of Selected Industries (MISSI).
The value of production index (VaPI) likewise recorded a slower growth of 2.7% in January from 2.8% in December 2025 and 4.1% in January 2025.
PSA attributed the slower growth for VaPI with the slower annual increment of the manufacture of food products at 0.8%, contributing 53.2% to the slowdown.
Other primary contributors to the deceleration in VaPI were the slower growth in the manufacture of other non-metallic mineral products at 5.4%, and the decline in the manufacture of transport equipment at 0.7%.
As for VoPI, the slower growth was primarily driven by the same top three industry divisions–decrease in the manufacture of food products, slower increase in the manufacture of other non-metallic mineral products; and decline in the manufacture of transport equipment.
Of the remaining 19 industry divisions, 11 industry divisions recorded increases while the other eight posted annual declines in their VaPI and VoPI in January 2026.
The top three industry divisions that contributed to the overall growth of VoPI were computer, electronic and optical products; beverages; and electrical equipment. For VoPI, computer, electronic and optical products; and beverages, were also the top contributors, as well as the manufacture of wood, bamboo, cane, rattan articles and related products.
The value of net sales index (VaNSI), meanwhile, registered a faster year-on-year increase of 4.6% in January 2026, mainly attributed to the faster growth in the manufacture of computer, electronic and optical products; food products, and beverages.
Growth in the volume of production index (VoNSI), on the other hand, slowed to 3%, mainly due to the slower increase in the manufacture of transport equipment; faster decline in the manufacture of coke and refined petroleum products; and drop in the manufacture of electrical equipment.
Based on MISSI’s responding establishments, the average capacity utilization rate for the manufacturing section in January 2026 was reported at 77.8%, slightly higher than the 77.6% in December 2025 and 76.2% in January 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 coke and refined petroleum products at 84.5%, computer, electronic and optical products at 82.5%, and manufacture of machinery and equipment except electrical at 81.4%.
READ: PH manufacturing recovers slightly in Dec with volume up 1%
