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The Philippine manufacturing sector continued its growth streak in February 2026
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The value of production index and volume of production index grew faster at an annual rate of 4.6% and 3.2%, respectively
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The growth in both VaPI and VoPI were driven primarily by the faster annual increases in three industry divisions, namely the manufacture of basic metals, food products, and beverages
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The average capacity utilization rate for the manufacturing section in February 2026 was reported at 77.5%, slightly down from 77.8% in January 2026
The Philippine manufacturing sector continued its growth streak in February 2026, according to preliminary data from the Philippine Statistics Authority (PSA).
The value of production index (VaPI) grew faster at an annual rate of 4.6% in February 2026 from the 2.6% increase in January 2026, and was the sharpest increment since July 2024 7.1% growth, according to PSA’s latest Monthly Integrated Survey of Selected Industries (MISSI).
The volume of production index (VoPI) likewise recorded a faster growth of 3.2% in February from 1.3% in January 2026.
S&P Global earlier said the Philippine manufacturing sector recorded improved operating conditions in February 2026, marking its strongest performance since November 2017 with accelerated increases in production volumes and new orders.
The growth in both VaPI and VoPI were driven primarily by the faster annual increases in three industry divisions, namely the manufacture of basic metals, food products, and beverages.
Of the remaining 19 industry divisions, 10 industry divisions exhibited annual increments in their VaPI, including, among others, the manufacture of computer, electronics, and optical products; tobacco products; furniture; leather and related products; and wearing apparel. Nine other industry divisions, including the manufacture of fabricated products, basic pharmaceutical products, and coke and refined petroleum products, posted annual declines in their VaPI for manufacturing during the period.
For VoPI, nine other industry divisions, such as the manufacture of furniture, tobacco products, and leather and related products, posted annual increases, while 10 industry divisions exhibited decreases in their VoPI during the period.
READ: Manufacturing output volume up 1.2% in Jan 2026
The value of net sales index (VaNSI), meanwhile, registered a slower year-on-year increase of 1.6% in February 2026. The deceleration was mainly attributed by the slower increase in the manufacture of computer, electronic and optical products.
The volume of net sales index (VoNSI) likewise posted a slower increment of 0.2%, also primarily driven by the slower increase in the manufacture of computer, electronic and optical products.
Eleven other industry divisions exhibited growth while 10 others recorded declines in their VaNSI and VoNSI during the period.
Based on MISSI’s responding establishments, the average capacity utilization rate for the manufacturing section in February 2026 was reported at 77.5%, slightly down from 77.8% in January 2026.
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 83.1%, other manufacturing and repair and installation of machinery and equipment at 81.4%, and manufacture of wood, bamboo, cane, rattan articles, and related products at 81.2%.
