Factory output growth accelerated in August, reversing the contraction seen in the previous month, data released by the Philippine Statistics Authority (PSA) showed.

Results of the Monthly Integrated Survey of Selected Industries showed that the value of production index (VaPI) grew by 2 percent in August, a turnaround from –1.9 percent in July.

"The uptrend in the annual growth rate of VaPI for manufacturing in August 2025 was mainly attributed by the faster annual increase of manufacture of food products at 21.0 percent during the month from 12.0 percent in the previous month," the PSA said.

The slower annual decrease recorded in the manufacture of basic metals at 7.8 percent from 26.5 percent the previous month, and the manufacture of coke and refined petroleum products at 6.8 percent in August from 11.4 percent in July also contributed to the higher VaPI.

The volume of production index (VoPI), meanwhile, grew by 1.4 percent from a 1.8 percent decline in July.

The PSA said the higher increase in the manufacture of food products, machinery and equipment, and the slower annual decline in basic metals contributed to the acceleration in VoPI during the month.

The PSA, meanwhile, said the average capacity utilization rate for manufacturing slightly went up to 77.3 percent from 77.2 percent in July.

All industry divisions reported capacity utilization rates of more than 60 percent during the month.

On reported capacity utilization rate, the top three industry divisions were manufacture of tobacco products at 85.8 percent, manufacture of coke and refined petroleum products at 82.8 percent, and manufacture of beverages at 81 percent. 

PIXABAY PHOTO