PH manufacturing growth up for second straight month in March

Philippine manufacturing growth accelerated for the second straight month in March as production of basic metals and transport equipment increased, data released by the Philippine Statistics Authority (PSA) on Wednesday showed.

Preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI) showed that the volume of production index (VoPI) grew by 7.8% in March, faster than the 3.1% in February, and a reversal of the 0.6% drop a year ago.

The biggest climb was seen in the manufacture of furniture which posted an annual growth of 41.8%, followed by basic metals (36.2%); wood, bamboo, cane, rattan articles (15.5%); computer, electronic, and optical products (14.7%); leather (12.8%); and basic pharmaceutical products (9.3%).

Seven industry divisions posted negative annual growth rates — fabricated metal products (-34.1%); printing and reproduction media (-21.8%); machinery and equipment (-13.0%); chemicals (-12.6%); paper and paper products (-9.1%); coke and refined petroleum (-4.4%); and other manufacturing and repair and installation of machinery and equipment (-1.6%).

The value of production index (VaPI), meanwhile, expanded by 10.5%. This compares with the 4.5% growth in February, and the 0.1% annual increase a year ago.

“The acceleration in the annual growth rate of VaPI for manufacturing in March 2026 was mainly attributed by the annual increase posted by the manufacture of coke and refined petroleum products,” the PSA said in an accompanying statement.

Production of coke and refined petroleum products, which contributed 41.1% to the faster annual growth rate, posted a reversed 16.6% decline in the previous month.

Average capacity utilization for the month was recorded at 78.5%, higher than the 77.6% the previous month and 76.4% a year ago.

More than a third or 34.8% operated at full capacity or 90% to 100%, while 40.8% operated at 70% to 89% capacity. Nearly a fourth or 24.5% operated below 70% capacity.

All industry divisions reported capacity utilization rates of more than 65%, with the top being manufacture of coke and refined petroleum products (84.4%); machinery and equipment (82.3%); and other manufacturing and repair and installation of machinery and equipment (81.8%). —VAL, GMA News