Factory output posts slower growth in 2024

February 8, 2025 | 12:00am

MANILA, Philippines — Philippine manufacturing output grew at a slower pace last year from 2023 as six industry divisions posted declines. 

Preliminary results of the Monthly Integrated Survey of Selected Industries released by the Philippine Statistics Authority (PSA)  showed that the Volume of Production Index (VoPI) for manufacturing posted a slower growth of 0.9 percent last year from 4.9 percent in 2023. 

Industry divisions that registered declines in 2024 are tobacco products (-1.6 percent); wood, bamboo, cane, rattan articles and related products (-12.3 percent); printing and reproduction of recorded media (-12.4 percent); other non-metallic mineral products (-9.9 percent); basic metals (-14.7 percent), and other manufacturing and repair and installation of machinery and equipment (-9.9 percent).

Data from the PSA also showed that the Value of Production Index (VaPI) for manufacturing also had slower average growth of 0.2 percent last year from 6.3 percent in 2023. 

Industry divisions with negative VaPI growth in 2024 are wood, bamboo, cane, rattan articles and related products (-13.5 percent); printing and reproduction of recorded media (-10.1 percent); other non-metallic mineral products (-12.4 percent); basic metals (-14.7 percent), and other manufacturing and repair and installation of machinery and equipment (-nine percent). 

In December last year, VoPI for manufacturing registered a 0.2-percent increase from the 3.9-percent contraction in November 2024. 

VoPI growth in December last year, however, slowed from the three percent increase in December 2023. 

The PSA said the uptrend in VoPI in December last year was primarily driven by the performance of three industry divisions: computer, electronic and optical products; coke and refined petroleum products and transport equipment. 

In particular, computer, electronic and optical products posted a 4.3-percent increment in December last year from a 5.8-percent decline in the previous month. 

Coke and refined petroleum products registered a 4.4-percent increase in December 2024 from a double-digit contraction of 11.6 percent in November 2024.

Transport equipment had a 6.1-percent growth in December last year from a 0.2- percent decline in November 2024.

VaPI posted 0.4 percent growth in December last year from a 3.5-percent decline in November 2024. 

“The uptrend in the annual rate of VaPI for manufacturing in December 2024 was mainly attributed to the annual increase in the manufacture of computer, electronic and optical products at 8.6 percent during the month from an annual drop of 2.5 percent in the previous month,” the PSA said.

It said the uptrend in VaPI was also supported by the performance of coke and refined petroleum products, which posted 5.2 percent growth in December last year from an 11.7-percent decline in November, as well as transport equipment as it posted 7.2 percent growth from the previous month’s 1.9 percent.

Based on responding establishments, the PSA said the average capacity utilization rate for manufacturing was at 75.5 percent in December last year, down slightly from the previous month’s 75.7 percent. 

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

Around 31.4 percent of the total number of respondents operated at full capacity or 90 to 100 percent. 

Meanwhile, 40.8 percent operated at 70 to 89 percent capacity and 27.8 percent ran at below 70 percent capacity.