The Philippine Statistics Authority reported that April 2026 factory output grew faster, with the value of production index rising 14.7 percent and the volume of production index expanding 12 percent.
Production growth was primarily driven by the manufacture of coke and refined petroleum products, which saw value jump 60.8 percent and volume increase 52.7 percent.
Value of net sales index growth slowed to 6.8 percent in April from 8 percent in March, mainly due to a deceleration in food manufacturing growth to 5.5 percent.
PHILIPPINE factory output grew faster in April, with both the value and volume of production expanding despite disruptions linked to the ongoing Middle East conflict, the Philippine Statistics Authority (PSA) said Friday, June 5, 2026.
Data from the PSA’s Monthly Integrated Survey of Selected Industries showed that the value of production index rose by 14.7 percent year on year in April, faster than the 13.1 percent growth posted in March. According to the PSA, the index had contracted by 2.2 percent in April 2025.
The value of production index, or VaPI, measures the change in the value of goods produced by manufacturers. A higher reading means factories produced goods with a greater total value compared with the same month a year earlier.
The PSA traced the faster growth mainly to the sharp increase in the manufacture of coke and refined petroleum products. The industry grew by 60.8 percent in April, a steep rise from 4.6 percent in March.
Fifteen other industry divisions also posted annual growth in VaPI, while six recorded contractions. Aside from petroleum-related manufacturing, the manufacture of computer, electronic and optical products and food products also contributed to the overall increase.
Volume output also strengthens
Factory production also increased when measured by volume. The volume of production index, or VoPI, grew by 12 percent in April, faster than the 10.2 percent expansion in March. This reversed the 2.4 percent contraction recorded in April 2025.
The VoPI tracks the quantity of goods produced, stripping out some of the effect of price changes. This means factories made more goods in April than they did in the same month last year.
The rebound was again led by the manufacture of coke and refined petroleum products, which grew by 52.7 percent in April after declining by 3.4 percent in March.
Sales growth slows
While production strengthened, sales growth lost some pace.
The value of net sales index rose by 6.8 percent year on year in April, slower than the eight percent growth in March. In April 2025, the index increased by 6.3 percent.
The slowdown was mainly linked to food manufacturing, which grew by 5.5 percent in April after rising by 12.2 percent in March. The PSA said food products accounted for 41.1 percent of the deceleration in the manufacturing sector’s sales growth.
Other contributors to the slower sales growth included the manufacture of chemicals and chemical products, which declined by 10.9 percent in April after growing by 4.2 percent in March, and the manufacture of other non-metallic mineral products, which eased to 4.7 percent from 12.3 percent.
Factories remain busy
The manufacturing sector’s average capacity utilization rate stood at 78.4 percent in April. This was slightly lower than the 78.6 percent recorded in March, but still above the 76.5 percent posted in April 2025.
Capacity utilization shows how much of a factory’s productive capacity is being used. A higher rate suggests that plants are running closer to their limits.
About one-third of the 623 responding establishments operated at 90 percent to 100 percent capacity during the month.
The highest reported capacity utilization rate was in the manufacture of coke and refined petroleum products at 91.8 percent. This was followed by the manufacture of leather and related products, including footwear, at 82.6 percent, and other manufacturing and repair and installation of machinery and equipment at 81.8 percent. / FROM PNA
