MANILA — Factory output expanded at a faster pace in February, driven by stronger performance in key manufacturing sectors, according to data released by the Philippine Statistics Authority (PSA).

The value of production index (VaPI), based on the Monthly Integrated Survey of Selected Industries, increased by 4.6 percent in February, improving from the 2.6-percent growth recorded in January. This also marked a reversal of the 1-percent contraction logged in the same month last year.

The PSA said the improvement was largely due to a rebound in the manufacture of basic metals, which posted a 21.8-percent growth from a 4-percent decline in January. Higher output in food and beverage products also supported the overall expansion.

Similarly, the volume of production index (VoPI) rose by 3.2 percent in February, up from 1.3 percent in January and recovering from a 2-percent drop in February 2025.

Despite the gains in production, average capacity utilization in the manufacturing sector slightly dipped to 77.5 percent from 77.8 percent in January. Still, all industry divisions operated above 60 percent capacity during the period.

Among the sectors, tobacco products recorded the highest capacity utilization at 83.1 percent, followed by other manufacturing activities, including repair and installation of machinery and equipment, at 81.4 percent. Wood, bamboo, cane, and rattan products posted an 81.2-percent utilization rate.

The PSA noted that the Monthly Integrated Survey of Selected Industries provides key indicators on employment, compensation, production, net sales, inventories, and capacity utilization to monitor the performance of the manufacturing sector.