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A slowdown in the manufacture of food products dragged down the Philippine manufacturing sector in July 2025, according to preliminary data from the Philippine Statistics Authority
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After three consecutive months of increases, the value of production index and volume of production index for the manufacturing section dropped 1.3% and 1.1%, respectively
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The average capacity utilization rate for the manufacturing section in July 2025 was reported at 77.1%, slightly higher than the 76.6% in June 2025
A slowdown in the manufacture of food products dragged down the Philippine manufacturing sector in July 2025, according to preliminary data from the Philippine Statistics Authority (PSA).
After three consecutive months of increases, the value of production index (VaPI) and volume of production index (VoPI) for the manufacturing section dropped 1.3% and 1.1%, respectively, in July 2025, according to PSA’s latest Monthly Integrated Survey of Select Industries (MISSI).
The downtrend in VaPI was primarily driven by three industry divisions—the slowdown in the increase of the manufacture of food products; the faster decline in the manufacture of chemicals and chemical products; and the deceleration in the annual growth rate of manufacture of transport equipment.
Of the remaining 19 industry divisions, 14 exhibited annual increments, while the other five posted annual declines in their VaPI during the period.
For VoPI, the downtrend was mainly attributable to the slower increase in the manufacture of food products; deceleration in the growth of the manufacture of computer, electronic and optical products; slower increment in the manufacture of transport equipment.
Of the remaining 19 industry divisions, 10 posted annual decrements while nine industry divisions exhibited annual increases in their VoPI during the period.
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The value of net sales index (VaNSI), meanwhile, continued to record slower annual growth in July 2025, posting a 3.4% increment from 5.5% both in June 2025 and July 2024.
The volume of net sales index (VoNSI) likewise registered a slower annual increase of 3.7% in July 2025 from a 5.9% expansion both in June 2025 and July 2024.
The deceleration in both VaNSI and VoNSI was mainly attributed to the slowdown in the increase of manufacture of food products; slower increment in the manufacture of transport equipment; and annual decline for the manufacture of coke and refined petroleum products.
Based on MISSI’s responding establishments, the average capacity utilization rate for the manufacturing section in July 2025 was reported at 77.1%, slightly higher than the 76.6% in June 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 manufacture of tobacco products at 85.1%, other manufacturing and repair and installation of machinery and equipment at 83.4%, and manufacture of leather and related products, including footwear at 83%.
