Production rises even as sales stumble in Philippine factories

Electronics and food drive manufacturing rebound, signaling inventory buildup and export readiness

Manufacturers increased production in October despite a slowdown in sales, the Philippines Statistics Authority’s (PSA) Monthly Integrated Survey of Selected Industries (MISSI) showed.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp. (RCBC), said this points to an inventory build-up for the sector “to prepare for seasonal increases in consumption and to meet export demand.”

The PSA on Tuesday reported that production, measured by the value of production index (VaPI), picked up, posting a 1.7 percent expansion in October compared to 1.6 percent in September. In October 2024, the VaPI for manufacturing recorded an annual decline of 1.6 percent.

The PSA credited the growth in VaPI to a faster annual increase in the manufacture of computer, electronic, and optical products at 16.8 percent, up from 4.8 percent the previous month.

“The manufacture of computer, electronic, and optical products accounted for 60.1 percent of the uptrend in VaPI growth for the manufacturing sector in October 2025,” it said.

Preparation for higher domestic consumption

Among the 22 industry divisions in manufacturing, the manufacture of computer, electronic, and optical products ranked second in weight in VaPI computation.

Joining it in the top three by weight are the manufacture of food products, and manufacture of basic pharmaceutical products and pharmaceutical preparations.

The PSA noted that food production posted an annual VaPI growth of 9.4 percent, slower than September’s 14.9 percent.

“The slowdown in food production’s annual VaPI growth in October 2025 was driven by declines in 6 out of 8 industry groups, led by other food products, which fell 1.5 percent after increasing 12.2 percent in September,”the PSA said.

Other food products include bakery items, sugar, and condiments, among others.

Faster growth for fish processing

The volume of output, measured by the Volume of Production Index (VoPI), rose 1.4 percent, faster than September’s 0.8 percent, though October 2024 had an annual decrease of 1.2 percent.

The PSA said this acceleration was primarily driven by the same top three industry divisions: manufacture of computer, electronic, and optical products (up 18.0 percent from 4.2 percent), manufacture of chemicals and chemical products (with a smaller annual decrease of 24.3 percent from 32.3 percent), and manufacture of wood, bamboo, cane, rattan articles, and related products (up 15.8 percent from a 5.7 percent decrease).

“Of the remaining 19 industry divisions, 11 posted annual gains, while eight saw annual declines in their VoPI,” the statement said.

VoPI for food products slowed to 9 percent in October from 14.1 percent in September, due to declines in 6 of 8 industry groups.

“Other food products posted a 2.9 percent annual decrease in October, down from a 10.5 percent increase in September,” the PSA said. “Meanwhile, processing and preserving fish, crustaceans, and mollusks grew 11.2 percent, faster than 7.5 percent in September.”

Overall, October’s manufacturing data reflects a sector that is adapting and positioning itself for both local demand and global opportunities. While some segments, like food products, saw slower growth, the strong performance of electronics, pharmaceuticals, and fish processing highlights resilience and strategic planning. 

For Filipino businesses, this signals steadier supply chains and potential for increased exports, while consumers may benefit from more consistent availability of goods. The figures suggest that, despite a temporary slowdown in sales, the country’s manufacturing industry is gearing up for a busy season and future growth, offering a cautiously optimistic outlook for the Philippine economy.

 

 

Philippine manufacturers ramped up production in October, led by electronics, pharmaceuticals, and food products, even as sales growth slowed. The increase hints at businesses preparing for seasonal demand and expanding export opportunities, offering potential benefits for both Filipino consumers and local enterprises.

 

 

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