Manufacturing growth in the Philippines slowed in January 2026 as key sectors like food and transport equipment cooled, according to data released by Philippine Statistics Authority on Friday.
The volume of production index (VoPI) for the manufacturing sector recorded a year-on-year increase of 1.2 percent in January, slower than a 2.0-percent increment in December 2025 and 3.2 percent growth seen in January 2025.
The value of production index (VaPI) followed a similar trend, slowing to a 2.7 percent annual increase from 2.8 percent in the previous month.
The deceleration was led by the manufacture of food products, which saw its volume of production drop 0.5 percent after a 14.9 percent surge in December.
Other major contributors to the slowdown included the manufacture of other non-metallic mineral products, which grew by 6.8 percent compared to 32.4 percent in December, and transport equipment, which fell 1.9 percent following a 5.8 percent gain.
Within the food sector, the downturn was sharpest in dairy products, which plummeted 10.3 percent in volume after a 44.3-percent jump in December. Vegetable and animal oils and fats also saw a deeper contraction of 19.6 percent.
Despite the broader slowdown, 11 of the 22 industry divisions posted annual increases in January. The primary drivers of overall growth were the manufacture of computer, electronic and optical products, beverages and electrical equipment.
Capacity utilization for the manufacturing sector remained steady at 77.8 percent in January, a slight increase from 77.6 percent in December and 76.2 percent in the same month last year.
All industry divisions reported operating rates above 60.0 percent, led by coke and refined petroleum products at 84.5 percent.
Data showed that 28.5 percent of responding establishments operated at full capacity, defined as 90 to 100 percent, while 42.6 percent operated at 70 to 89 percent capacity and 28.9 percent operated below 70 percent.
