How Did the Manufacturing Output in the Philippines Fare in August?
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Synopsis
In August, the Philippines saw a remarkable rebound in manufacturing output, with the value of production index up by 2%. This turnaround is largely attributed to the food sector's performance. Stay tuned to explore the factors behind this growth and its implications for the economy.
Key Takeaways
- Manufacturing output in the Philippines rose by 2% in August.
- Food products significantly contributed to this growth.
- Overall inflation increased to 1.7% in September.
- Core inflation saw a slight decrease to 2.6%.
- Nine out of 22 manufacturing divisions reported growth in August.
Manila, Oct 7 (NationPress) In August, the manufacturing output in the Philippines witnessed an increase, with the value of production index (VaPI) climbing by 2 percent year-on-year, rebounding from a 1.9 percent decline in July, according to the Philippine Statistics Authority (PSA) released on Tuesday.
Moreover, the volume of production index (VoPI) experienced a rise of 1.4 percent in August, contrasting with a 1.8 percent decrease in the prior month, as reported by the PSA.
The PSA noted that the annual growth rate of VaPI for manufacturing in August was primarily due to a quicker yearly increase in the production of food products, as per a report from Xinhua News Agency.
The food products sector accounted for 46.3 percent of the growth in the annual rate of VaPI for the manufacturing industry in August, the PSA specified.
Among the 22 divisions in the manufacturing sector, the production of food products held the highest weight in the VaPI calculations.
The PSA also indicated that the annual growth rate of VoPI for manufacturing in August was chiefly influenced by the sectors of food products, basic metals, and machinery and equipment excluding electrical.
Of the remaining 19 divisions, nine reported annual increases in their VoPI for manufacturing in August.
Meanwhile, the year-on-year headline inflation in the Philippines accelerated to 1.7 percent in September from 1.5 percent in August, driven by rising transport and food prices, according to the PSA.
At a press conference, PSA Chief Dennis Mapa stated that the inflation rise in September was largely attributed to an annual increase in the transport index, which went up to 1 percent from a yearly decline of 0.3 percent in August.
Additionally, the rise in inflation was influenced by a higher annual increment in the food and non-alcoholic beverages index, which stood at 1 percent in September, compared to 0.9 percent in the previous month.
Mapa further explained that the September inflation rate brings the national average inflation from January to September 2025 to 1.7 percent, contrasting with a higher rate of 1.9 percent in September 2024.
Core inflation, which excludes certain food and energy items, decreased to 2.6 percent in September 2025.
In September 2024, the core inflation rate was noted at 2.4 percent.
Point of View
I find it crucial to highlight the resilience of the Philippine manufacturing sector. The recent uptrend in production showcases potential growth opportunities, particularly in food manufacturing. However, alongside this, we must remain vigilant regarding inflation trends that could impact overall economic stability.
NationPress
07/10/2025
Frequently Asked Questions
What led to the increase in manufacturing output in August?
The increase was primarily driven by a significant rise in the production of food products, which contributed 46.3 percent to the annual growth rate of the value of production index.
How does the manufacturing output in August compare to previous months?
In August, the manufacturing output saw a 2% increase year-on-year, contrasting with a 1.9% decline in July, indicating a positive rebound.
What are the implications of rising food prices on inflation?
Rising food prices contribute to overall inflation, which increased to 1.7% in September, highlighting the need for careful monitoring of economic trends.
