Philippine factory output grows 0.4% in Dec

The Philippine Statistics Authority (PSA) reported that the country's factory output grew by 0.4% in December 2024, reversing the previous month's contraction.

Despite this growth, annual industrial production growth eased to 0.9% in 2024 due to geopolitical tensions dragging demand, according to preliminary data from PSA’s latest Monthly Integrated Survey of Selected Industries.

The volume of production index (VoPI) saw a slight uptick to 0.2% year-on-year in December, ending three straight months of decline and reversing the revised 3.9% drop in November.

Capacity utilization rate for manufacturing stood at 75.5% in December 2024, slightly down from the previous month but higher than the same period last year, with nineteen out of twenty-two industry divisions posting average capacity utilization rates of at least 70%.

Sergio R. Ortiz-Luis Jr., honorary chairman at the Philippine Chamber of Commerce and Industry, attributed the decrease in production orders to geopolitical tensions affecting trade and investment from China.

John Paolo R. Rivera, senior research fellow at the Philippine Institute for Development Studies, noted that softer industrial and export activity reflects broader economic headwinds including tighter financial conditions and weaker global demand.