The Philippine manufacturing sector experienced a positive rebound in December 2024, with both the Value of Production Index (VaPI) and Volume of Production Index (VoPI) showing growth. However, the overall growth for the year remained significantly lower compared to the previous two years, indicating a slowdown in the sector's performance.
Philippine manufacturing output saw a positive rebound in December 2024, bouncing back from a contraction in the previous month. The Value of Production Index (VaPI) expanded by 0.4 percent, reversing November's 3.5-percent decline, while the Volume of Production Index (VoPI) also grew by 0.2 percent after falling by 3.9 percent. These gains, however, were significantly lower compared to the same period in 2023, highlighting a slowdown in the sector's growth trajectory.
The year-end results showed a 0.2 percent growth for VaPI and 0.9 percent growth for VoPI in 2024, both considerably below the 6.3 percent VaPI and 4.9 percent VoPI growth recorded in 2023, and even further from the robust 22.5 percent VaPI and 15.1 percent VoPI growth observed in 2022.December's VaPI rebound was primarily attributed to a strong recovery in the manufacture of computer, electronic, and optical products, which surged by 8.6 percent following a 2.5-percent drop in November. This sector, holding the second-highest weight in calculating the production indicator, contributed 35.2 percent to the VaPI trend for the manufacturing sector in December 2024. Other key drivers included the manufacture of coke and refined petroleum products, which grew by 5.2 percent after a 11.7-percent decline, and the manufacture of transport equipment, expanding by a robust 7.2 percent from 1.9 percent.While the majority of the remaining 19 industry divisions showed growth, six experienced contractions. The most notable decline was observed in the manufacture of basic metals, which fell by 18.2 percent. The same industry divisions that propelled the VaPI also contributed to the VoPI growth: computer, electronic, and optical products grew by 4.3 percent from -5.8 percent; coke and refined petroleum, up 4.4 percent from -11.6 percent; and transport equipment, 6.1 percent from -0.2 percent. Across the remaining 19 industry divisions, 13 again demonstrated annual growth in December, while the other six declined. In terms of capacity utilization, the manufacturing sector operated at an average of 75.5 percent in December, slightly lower than 75.7 percent in the previous month, but higher than the 74.6 percent recorded a year ago. All industry divisions reported capacity utilization rates exceeding 60.0 percent during the month, with the top three being the manufacture of textiles (81.4 percent), manufacture of machinery and equipment except electrical (81.1 percent), and manufacture of other nonmetallic mineral products (80.7 percent). Nearly a third, 181 or 31.4 percent, of the 576 establishments participating in the PSA survey reported operating at full capacity, defined as 90 to 100 percent. Meanwhile, 40.8 percent (235 firms) indicated operating at 70- to 89-percent capacity, and 27.8 percent (160 firms) operated below 70 percent
MANUFACTURING GROWTH OUTPUT PHILIPPINE ECONOMY PRODUCTION INDEX CAPACITY UTILIZATION
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