PH manufacturing output up slightly in December ’25
The Philippine manufacturing sector saw some modest recovery in December 2025, buoyed by increased holiday consumption, the Philippine Statistics Authority (PSA) reported on Friday.
The volume of production index (VoPI), a measure of manufacturing output, grew 1 percent in December, according to PSA’s monthly integrated survey of selected industries.
However, full-year average factory output slowed by 0.02 percent, down from the 0.7 percent growth registered in 2024.
The December figure reversed the 1.1 percent annual decrease seen in the previous month, mainly due to the majority of industry divisions posting faster year-on-year growth to keep up with the demand for the holiday season.
“The boost in factory output is also affected by increased consumption, as remittances are higher during December,” said Leonardo Lanzona, labor economist at Ateneo de Manila University.
Seasonal growth
However, Lanzona cautioned that the modest recovery is largely seasonal, noting that the “crisis of confidence lingers,” particularly as consumer and business sentiment remains rattled following tepid economic growth in 2025.
Breaking down the figure, the main contributors to the slight uptick were the manufacture of other nonmetallic mineral products, which surged 31.4 percent year-on-year from 6 percent in November, and the manufacture of food products, which grew 10.4 percent from 7.6 percent.
The manufacture of machinery and equipment (except electrical) also improved, rising 10.1 percent and reversing the 10.7 percent annual decline seen in the previous month.
Last month, Lanzona noted a similar trend in a separate purchasing managers’ index (PMI) by S&P Global, which showed the manufacturing sector rebounding to 50.2 in December after a four-year low of 47.4 in November. This recovery, Lanzona, may also be temporary.
Looking ahead, however, the PMI rose to a nine-month high in January, driven by improved demand that raised production levels in firms.
If the PSA’s VoPI continues to match the pace of the PMI, the manufacturing sector is likely to see a more sustained improvement in January.
