Philippine Manufacturing Output Accelerates in February 2026, Led by Metals and Food
Factory output in the Philippines experienced a significant acceleration in February 2026, propelled by robust growth in key manufacturing sectors, according to data released by the Philippine Statistics Authority (PSA) on Tuesday, April 7, 2026. This positive trend marks a notable improvement from previous months and signals a strengthening industrial performance.
Key Indicators Show Strong Growth
The value of production index, derived from the Monthly Integrated Survey of Selected Industries (MISSI), increased by 4.6 percent in February. This represents a substantial acceleration from the 2.6 percent growth recorded in January and a complete reversal from the one-percent contraction observed in the same period a year earlier. The PSA highlighted that this enhanced performance was primarily driven by a sharp rebound in the manufacture of basic metals, which surged by 21.8 percent, recovering from a four percent decline in January. Additionally, faster growth in the production of food and beverage products contributed significantly to the overall increase.
Volume of Production and Capacity Utilization
In parallel, the volume of production index also showed improvement, climbing by 3.2 percent in February. This is up from 1.3 percent in January and marks a turnaround from the two percent drop recorded in February of the previous year. Meanwhile, average capacity utilization in the manufacturing sector experienced a slight decline, edging down to 77.5 percent from 77.8 percent in January. Despite this minor dip, all industry divisions continued to operate above the 60 percent threshold, indicating sustained activity across the board.
Top Performers in Capacity Utilization
The highest capacity utilization rates were observed in specific sectors, with tobacco products leading at 83.1 percent. Other manufacturing categories, including repair and installation of machinery and equipment, followed closely at 81.4 percent, while wood, bamboo, cane, and rattan products recorded a utilization rate of 81.2 percent. These figures underscore the diverse strengths within the Philippine manufacturing landscape.
Role of MISSI in Economic Monitoring
The MISSI serves as a critical tool for tracking monthly data on various aspects of the manufacturing sector, including employment, compensation, production, net sales, inventories, and capacity utilization. By providing these comprehensive indicators, it enables policymakers and analysts to monitor the performance and health of the manufacturing industry effectively, supporting informed decision-making for economic development.
