Factory output dropped in February this year, according to preliminary data released by the Philippine Statistics Authority (PSA).

Preliminary results of the latest Monthly Integrated Survey of Selected Industries showed that the value of production index (VaPI) fell by 1.6% in February, a turnaround from the 3 percent expansion seen in January this year.

“The downtrend in the annual rate of VaPI for manufacturing in February 2025 was mainly attributed to the faster annual decrease in the manufacture of basic metals at 35.6% during the month from an annual decrement of 9.5% in the previous month,” the PSA said.

In February last year, VaPI rose by 1.8%.

Despite the latest contraction, the VaPI grew by 0.7% for the first two months of the year.

The PSA said other primary contributors to the downtrend were the slower annual increase in the manufacture of machinery and equipment except electrical at 29.1% from 64.1% in January 2025, and the faster annual decline of manufacture of chemicals and chemical products at 21.1% from -1.2% in the previous month.

The volume of production index (VoPI) meanwhile, also declined by 2.4% from a 2.3% in January this year and 3.2% expansion in February 2024.
For the first two months of the year, VoPI contracted by 0.1%.

The PSA attributed the decline to the decrease in the manufacture of basic metals, machinery and equipment except electrical, and chemicals and chemical products.

The average capacity utilization rate for the manufacturing section was reported at 75.9% from the 76% average capacity utilization rate in the previous month.

In February 2024, the average capacity utilization rate was lower at 74.4%.

“All industry divisions reported capacity utilization rates of more than 60% during the month,” the PSA said.

The top three industry divisions in terms of reported capacity utilization rate were manufacture of machinery and equipment except electrical at 83.7%, other manufacturing and repair and installation of machinery and equipment at 81.5%, and manufacture of tobacco products at 79.6%.

PNA PHOTO