Philippines manufacturing output rebounds in August 2024, with production value rising 2% YoY. Food manufacturing leads the recovery, offsetting July’s decline.
MANILA – The Philippines’ manufacturing sector returned to growth in August, according to data released by the Philippine Statistics Authority (PSA). The key indicator for production value posted a positive year-on-year increase, signaling a recovery after a contraction the previous month.
The Value of Production Index (VaPI) rose by 2.0 percent in August 2024, a significant turnaround from the 1.9 percent decline recorded in July. Similarly, the Volume of Production Index (VoPI) increased by 1.4 percent, also recovering from a 1.8 percent drop in July.
Food Manufacturing Fuels the Recovery
The PSA identified the manufacture of food products as the primary driver behind the rebound. This industry division, which carries the highest weight in the calculation of the VaPI, was responsible for a substantial 46.3 percent of the uptrend in the annual growth rate.
The resilience and growth in food production were powerful enough to offset weaknesses in other sectors and pull the overall manufacturing index into positive territory.
Broader Sector Performance
The recovery, while positive, was not uniform across all industries. The PSA noted that the improved performance of the VoPI was driven by three key divisions:
- Manufacture of Food Products
- Manufacture of Basic Metals
- Manufacture of Machinery and Equipment (except electrical)
Out of the 22 industry divisions tracked, only nine reported annual increases in their production volume for August, indicating that while the headline figures are positive, challenges remain for a significant portion of the manufacturing sector.
This data suggests a stabilizing industrial landscape in the Philippines, with core sectors like food and basic metals providing a foundation for growth despite global economic headwinds.
