-
The Philippine manufacturing sector saw a slight recovery in December 2025 as more industry divisions recorded annual increases during the period
-
After posting declines in November, the value of production index improved 1.9% year-on-year while the volume of production index grew 1%
-
Contributing to the December increase are the faster annual increase of the manufacture of other non-metallic mineral products and manufacture of transport equipment, and growth of the manufacture of machinery and equipment except electrical mainly
-
The average capacity utilization rate for the manufacturing section in December 2025 was reported at 77.5%, slightly up from 77.4% in November 2025
The Philippine manufacturing sector saw a slight recovery in December 2025 as more industry divisions recorded annual increases during the period, according to the Philippine Statistics Authority’s latest Monthly Integrated Survey of Selected Industries (MISSI).
The value of production index (VaPI) improved 1.9% year-on-year (YoY) in December 2025 from a 1% decline in November 2025 while the volume of production index (VoPI) grew 1% YoY from a 1.1% drop in November 2025.
According to S&P Global purchasing managers’ index survey data for December 2025, operating conditions in the Philippine manufacturing sector saw slight improvement in the last month of last year as new orders volume rose for the first time in four months.
For full year 2025, VaPI posted an annual average increase of 0.4%, in contrast from the 0.02% decrease in 2024.
The VoPI, on the other hand, declined 0.02% in 2025, indicating a downtrend from the 0.7% and 4.9% annual average growth rates registered in 2024 and 2023, respectively.
For both VaPI and VoPI, the slight uptrend in December was mainly attributed by the faster annual increase of the manufacture of other non-metallic mineral products and manufacture of transport equipment, and growth of the manufacture of machinery and equipment except electrical.
Of the other 19 industry divisions, 12 industry divisions exhibited annual increments, while the other seven posted annual declines in their VaPI and VoPI for manufacturing in December.
The top three industry divisions contributing to the overall year-on-year growth, meanwhile, were the manufacture of food products, manufacture of computer, electronic and optical products; and manufacture of other non-metallic mineral products.
The value of net sales index (VaNSI) in December registered a faster year-on-year increase of 3.7% from 1.4% in November 2025, fueled by the faster growth in the manufacture of transport equipment and other non-metallic mineral products, and the slower decline in the manufacture of basic metals.
Thirteen other industry divisions exhibited annual increments in their VaNSI while six other industry divisions posted annual drops.
The volume of net sales index (VoNSI) likewise rose faster at 2.7% in December 2025 from 1.3% in November 2025. The acceleration was mainly due to the faster increase in the manufacture of other non-metallic mineral products, and manufacture of transport equipment, and the growth in the manufacture of tobacco products.
Of the 19 remaining industry divisions, 11 recorded growth while eight posted declines.
For the whole year, VaNSI grew 5.2%, higher than the 1.2% and 0.1% increases in 2024 and 2023, respectively.
VoNSI also saw faster yearly growth to 4.8% in 2025 from 1.9% in 2024.
Based on MISSI’s responding establishments, the average capacity utilization rate for the manufacturing section in December 2025 was reported at 77.5%, slightly up from 77.4% in November 2025 but down from 76.1% in December 2024.
All industry divisions reported capacity utilization rates of more than 65% during the month. The top three industry divisions in terms of reported capacity utilization rate were manufacture of coke and refined petroleum products at 84.9%, manufacture of computer, electronic and optical products at 83.2%, and other manufacturing and repair and installation of machinery and equipment at 82.2%.
