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The Philippine manufacturing sector posted gains in August 2025 as more industry divisions recorded annual increases during the period
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The value of production index grew 2% while the volume of production index increased 1.4% in August 2025 after posting declines in July 2025
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The average capacity utilization rate for the manufacturing sector in August 2025 was reported at 77.3%
The Philippine manufacturing sector posted gains in August 2025 as more industry divisions recorded annual increases during the period, according to the Philippine Statistics Authority (PSA).
The value of production index (VaPI) grew 2% while the volume of production index (VoPI) increased 1.4% in August 2025 after posting declines in July 2025, according to PSA’s latest Monthly Integrated Survey of Selected Industries (MISSI).
The uptrend in the annual growth rate of VaPI and VoPI was primarily driven by the faster increase in the manufacture of food products.
READ: PH manufacturing down in July 2025 after three straight months of increases
The other main drivers for VaPI were the slower annual decrements recorded in the manufacture of basic metals, and coke and refined petroleum products. The other main contributors for VoPI, meanwhile, were the slower decline in the manufacture of basic metals, and the increase in the manufacture of machinery and equipment except electrical.
Of the remaining 19 industry divisions, 10 industry divisions exhibited annual increments, while the other nine posted annual declines in their VaPI during the period. In contrast, nine posted annual increments while 10 industry divisions exhibited annual decreases in their VoPI during the period.
The value of net sales index (VaNSI), meanwhile, registered a slower year-on-year increment of 2.9% in August. This was primarily due to the slower increase in the manufacture of computer, electronic and optical products; slowdown in the manufacture of other non-metallic mineral products; and decrement in the manufacture of basic metals.
The volume of net sales index (VoNSI) also registered a slower increase of 2.4% in August, resulting from the slower increase in the manufacture of computer, electronic and optical products, decline in the manufacture of basic metals, and slower growth in the manufacture of other non-metallic mineral products.
Based on MISSI’s responding establishments, the average capacity utilization rate for the manufacturing sector in August 2025 was reported at 77.3%, a minimal improvement from the 77.2% in July 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 tobacco products at 85.8%, coke and refined petroleum products at 82.8%, and beverages at 81%.
