-
The country’s manufacturing sector recorded a growth slowdown in May 2026 even as more industry divisions recorded increases during the period
-
The value of production index increased 13.5% year-on-year while the volume of production index likewise grew 10.2% in May 2026, slower than the growth posted in April 2026
-
The manufacture of transport equipment, and food products, and the decline in the manufacture of chemicals and chemical products contributed to the slower growth in May 2026
-
The average capacity utilization rate for the manufacturing section in May 2026 was reported at 78.8%, slightly up from 78.5% in April 2026 and 77.1% in May 2025
The country’s manufacturing sector recorded a slowdown in growth in May 2026 even as more industry divisions recorded increases during the period, according to preliminary figures from the Philippine Statistics Authority (PSA).
The value of production index (VaPI) increased 13.5% year-on-year in May 2026, slower than the 14.6% registered in April 2026 but a reversal from the 0.5% decrease in May 2025, according to PSA’s latest Monthly Integrated Survey of Selected Industries (MISS).
The volume of production index (VoPI) likewise posted a slower growth with a 10.2% increase from 11.7% increment in April 2026. In contrast, the VoPI in May 2025 dropped 0.3%.
The slowdown in VaPI was mainly attributed to the slower increase posted by the manufacture of transport equipment, and food products, and the decline in the manufacture of chemicals and chemical products.
Of the remaining 19 industry divisions, 13 industry divisions exhibited annual increments in their VaPI, while the other six posted annual declines during the period.
The same three industry divisions mainly brought the deceleration in VoPI, particularly the decline in the manufacture of transport equipment, and chemicals and chemical products, and slower growth in the manufacture of food products.
Of the remaining 19 industry divisions, 12 posted annual increases in their VoPI, while seven industry divisions exhibited annual decreases.
READ: PH manufacturing continues double-digit growth in April 2026
The top three industry divisions contributing to the overall year-on-year growth rate of VaPI and VoPI were the manufacture of coke and refined petroleum products; computer, electronic and optical products; and basic metals.
The value of net sales index (VaNSI), on the other hand, grew faster year-on-year at 7.2% in May 2026 from the 6.4% and 6.6% increases in April 2026 and May 2025, respectively.
The acceleration was mainly attributed to the faster annual increase recorded in the manufacture of coke and refined petroleum products, and basic metals.
The 4.2% increase in the volume of net sales index (VoNSI) was likewise faster than the 3.7% growth in April 2026 but lower than the 6.8% improvement in May 2026.
VoNSI’s acceleration was likewise brought by the faster two-digit increase in the manufacture of coke and refined petroleum products, and the year-on-year increment in the manufacture of basic metals.
Based on MISSI’s responding establishments, the average capacity utilization rate for the manufacturing section in May 2026 was reported at 78.8%, slightly up from 78.5% in April 2026 and 77.1% in May 2025.
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 leather and related products, including footwear at 84.5%, coke and refined petroleum products at 82.5%, and computer, electronic and optical products at 81.2%.
