Pre-Middle East crisis: PH factory output rebounds
Factory output in the Philippines bounced back in February after a weak start to the year, on the back of front-loaded orders, although the recovery could falter as external headwinds intensify.
The Philippine Statistics Authority reported on Tuesday that the Volume of Production Index (VoPI)—a measure of manufacturing output—expanded 3.2 percent year-on-year in February, faster than the sluggish 1.3-percent growth in January.
State statisticians attributed the increase mainly to the production of basic metals, which surged 18.7 percent in February from a 6.1-percent decline a month earlier.
Output of food products also grew at a faster 3.4 percent, while beverages posted a stronger 7.2-percent expansion, underscoring a rebound in consumer-related manufacturing.
However, February’s VoPI print remains modest compared to previous years and reflects an uneven recovery. Of the 22 industries, 10 still posted annual declines.
Leonardo Lanzona, economist at Ateneo de Manila University, said the February rebound largely reflects a normalization.
“While February’s recovery seemed genuine—driven by export demand, peso-driven competitiveness in electronics, and post-holiday restocking of food manufacturing—it was built partly on front-loaded orders and an energy cost environment that has since deteriorated sharply,” he said.
The manufacturing sector now faces pressure in the months ahead due to the Middle East war, which has driven up energy costs and spilled over into key sectors of the economy.
