By Justine Irish D. Tabile, A reporter
OUTPUT expanded in May, although it slowed from last month’s growth trajectory, when analysts noted a normalization of manufacturing activity in the face of strong demand.
According to the preliminary results of the Philippine Statistics Authority’s (PSA) Monthly Integrated Survey of Selected Industries, manufacturing output, as measured by the volume of production index (VoPI), grew by 10.2% year-on-year in May.
This was a reversal from the revised 0.3% decline in May 2025 but slowed the pace of the revised 11.7% expansion in April. It was the weakest reading since the 3.5% posted in February, though similar to the 10.2% reported in March.
The S&P Global Philippines Manufacturing Purchasing Managers’ Index (PMI) improved to 50.8 in May from 48.3 in April.
PMIs are an indicator of future manufacturing activity, showing raw material orders placed for processing of manufactured goods several months down the line.
A reading above 50 indicates expansion, while a reading below 50 indicates deterioration.
Factory production grew 6% year-on-year in the first five months, PSA said.
Reyes Tacandong & Co. Senior Advisor Jonathan L. Ravelas said that while output growth slowed slightly in May, the manufacturing sector is still growing at a healthy double-digit pace.
“I would consider this to be normal after a strong April rather than starting to decline. The current trend remains positive,” said Mr. Ravelas on Viber.
Union Bank of the Philippines Chief Economist Ruben Carlo O. Asuncion said the modest growth rate does not reflect a decline in productivity.
“Although transportation equipment, food, and chemicals are measured in the main topic, strength in petroleum products, electronics, and basic metals suggest that the underlying manufacturing activity remains supportive of economic growth,” said Mr. Asuncion.
PSA showed declining growth mainly due to weak releases of transportation, food products, and chemicals.
The output of chemicals and chemical products reached 14.8% in May, compared to a revised decrease of 2.1% in April.
In May, production of transportation materials fell 1.4% year-on-year after growing 9.8% in April, while production of food products fell to 1.7% from 4.5% revised last month.
PSA said food production has declined due to poor production of dairy products, processed animal feed and processed meat.
The top three industrial categories driving overall growth were coke and refipetroleum products, which grew by 73.3% in May from 52.6% in April; computer, electronic and optical products (15.8% vs. 14.8%) and basic metals (21.6% vs. 23.4%).
“Of the remaining 19 industrial sectors, 12 increased prices year-on-year in May. Meanwhile, seven industrial sectors showed annual declines in their production VoPI during this period,” PSA said.
Energy consumption reached 78.8% in May, in comparison 77.1% posted last year and 78.5% in April.
In the coming months, Mr. Asuncion said manufacturing is expected to continue to benefit from strong domestic demand, low prices, and a gradual improvement in foreign demand.
However, he said global trade and geopolitical risks remain potential obstacles to growth.
The manufacturing PMI reached 50.9 in June from 50.8 in May, reflecting continued growth in output and new orders.
