Factory output in the Philippines saw a significant rebound in April, primarily driven by increased food manufacturing production, according to the Philippine Statistics Authority (PSA). The latest Monthly Integrated Survey of Selected Industries (MISSI) showed that the Volume of Production Index (VoPI) grew by 6.7 percent year-on-year in April.
This growth marks a reversal from the 5.8 percent decline observed in March, although it was slightly slower than the 8 percent growth seen in April of the previous year. Despite this, April’s growth rate represents the fastest increase in seven months since September 2023.
Chief economist Michael Ricafort attributed the increase in food manufacturing output to favorable weather conditions during the month, which supported agricultural production and supply. He also noted that the seasonal rise in demand for food post-holidays, along with more vacations and festivities, contributed to the growth.
Key contributors to the overall growth in factory output were the manufacturing of food products, which expanded by 6.8 percent in April after a decline in the previous month, as well as the manufacture of transport equipment and fabricated metal products, among others.
The report also highlighted that demand from external markets showed robust growth, with export orders increasing for a fourth consecutive month. Despite a slight decrease in overall sales in May compared to the previous month, many companies are looking to build their inventories to align with the continued output growth.
Furthermore, the average capacity utilization rate in April stood at 75.2 percent, slightly lower than the previous month. All 22 sectors monitored by the PSA showed an average capacity utilization rate of at least 60 percent during the month.
