-
The Philippine manufacturing sector continued to record growth, albeit slower, in July 2026
-
The value of production index registered a slower annual increase of 9.6% while the volume of production index grew 6.4% in July 2026
-
The deceleration in growth was mainly attributed to the slower annual increase posted by the manufacture of coke and refined petroleum products, and by the manufacture of computer, electronic and optical products
-
The average capacity utilization rate for the manufacturing section in July 2026 stood at 78.8%
The Philippine manufacturing sector continued to record growth, albeit slower, in July 2026, according to preliminary figures from the Philippine Statistics Authority (PSA).
The value of production index (VaPI) registered an annual increase of 9.6% in July 2026, slower than the 13.9% growth in June 2026 but a reversal from the 0.2% decrement in July 2025, according to PSA’s latest Monthly Integrated Survey of Selected Industries (MISSI).
Similarly, the volume of production index (VoPI) grew 6.4% in July 2026, slower than the 10.6% increment in June 2026 but in contrast to the 0.1% decrease in June 2025.
The deceleration in growth in July 2026 was mainly attributed to the slower annual increase posted by the manufacture of coke and refined petroleum products, and by the manufacture of computer, electronic and optical products.
Twelve other industry divisions exhibited increases in their VaPI, while eight others posted declines in July.
In terms of VoPI, 11 other industry divisions posted increases while nine others exhibited decreases in July.
The value of net sales index (VaNSI) and volume of net sales index (VoNSI) also registered slower annual increases in July, recording an 8.1% and 4.9% growth, respectively,
The slowdown was mainly due to slower annual increase recorded in the manufacture of basic metals; computer, electronic and optical products; and the annual drop exhibited by the manufacture of basic pharmaceutical products and pharmaceutical preparations.
Capacity utilization
Based on MISSI’s responding establishments, the average capacity utilization rate for the manufacturing section in July 2026 stood at 78.8%, a slight drop from 78.9% in June 2026 but higher than the 77.6% observed 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 the manufacture of tobacco products at 85.6%, manufacture of coke and refined petroleum products, and manufacture of leather and related products, including footwear, both at 83.5%.
