Philippine manufacturing output accelerates in September on petroleum and metals gains

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Manufacturing output September growth

Highlights

Philippine manufacturing output rises 9% year on year in September, reversing the previous year's 1.1% contraction and accelerating from August's revised 6.6% increase.
Output of coke and refined petroleum products surges 31% and basic metals jump 30.9% in September, driving the strongest production growth since June.
Average manufacturing capacity utilization registers at 78.4% in September, edging up from 77.4% a year ago despite a 4.5% decline in food production.

September output growth gathers pace

As reported by BusinessWorld Online, citing the Philippine Statistics Authority, factory output, as measured by the volume of production index, rises 9% year on year in September, reversing the 1.1% contraction recorded in September 2025 and accelerating from the revised 6.6% growth in August.

The PSA says September's expansion is the fastest since the revised 11.3% increase in June. It also downwardly revises August output growth from the initially reported 11.8%.

The stronger September reading is driven mainly by higher production of coke and refined petroleum products, basic metals and transport equipment. Output of coke and refined petroleum products climbs 31%, turning around from a 1.2% decline a year earlier and quickening from 20.4% in August, while basic metals rises 30.9% after a 23.3% contraction in September 2025 and transport equipment grows 12.7%, faster than both a year earlier and the previous month.

Of the remaining 19 industry divisions, 10 post annual increases in production volume while nine register declines. The biggest contributions to overall manufacturing growth come from coke and refined petroleum products, computer, electronic and optical products, and basic metals.

Capacity use stays firm despite food weakness

Food production contracts 4.5% in September, reversing the 14.9% growth seen in September 2025 and marking a steeper decline than the 1.3% drop in August. The PSA says the faster annual decline in food manufacturing is caused by weaker growth in six of the eight industry groups, led by prepared animal feeds, which slows to 3.6% from 16.0% in August 2026.

Average capacity utilization stands at 78.4% in September, higher than 77.4% a year earlier but slightly below 78.7% in August. All industry divisions post utilization rates above 65%, with the highest levels seen in tobacco products at 99.5%, coke and refined petroleum products at 85.6%, and other manufacturing and repair and installation of machinery and equipment at 83.3%.

Our earlier article on the Philippines’ expanded access to Malaysia’s halal market explained how PhilUlama’s recognition by Malaysia’s JAKIM increased the number of Philippine-based certifiers eligible to approve exports for Malaysia. We noted that broader certification capacity can support export growth and investment beyond food—potentially benefiting industries such as pharmaceuticals, cosmetics, logistics, and tourism as the country builds out its halal economy strategy.

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