MANUFACTURING output slowed in January as the majority of industry divisions posted declines, the Philippine Statistics Authority (PSA) reported on Thursday.

The Value of Production Index (VaPI) expanded by just 0.9 percent, down from December's 2.2 and well below the year-earlier 12.5 percent.

The Volume of Production Index (VoPI), meanwhile, grew by a slightly higher 1.9 percent compared to 1.6 percent a month earlier, but this was still lower than January 2023's 7.3 percent.

The VaPI slowdown was primarily attributed to basic metals output slowing to 6.6 percent from 16.8 percent in December.

"The manufacture of basic metals contributed 34.0 percent to the deceleration in the annual increase of VaPI for the manufacturing section in January 2024," the PSA said in a statement.

It also held the fifth highest weight among 22 industry divisions.

Nine of the 22 industries posted growth during the month while 13 contracted, PSA data showed.

The manufacture of coke and refined petroleum products posted the highest growth of 27.8 percent, down from December's 32.1 percent.

The biggest drop was in the manufacture of textiles, which reversed to a 31.7-percent contraction from 8.8-percent growth a month earlier.

As for the VoPI, January's growth was said to be mainly due to a "slower annual drop in the manufacture of computer, electronic and optical products at 7.1 percent ... compared with its double-digit annual decline of 16.5 percent in the previous month," the PSA said.

The sector was said to have accounted for 28.9 percent to the VoPI uptrend.

Nine of the 22 industry divisions also recorded gains while 13 fell.

Average capacity utilization by manufacturers, meanwhile, edged up to 74.5 percent from 74.4 percent in December.

"Almost all industry divisions reported capacity utilization rates of more than 60.0 percent during the month, except the manufacture of basic pharmaceutical products and pharmaceutical preparations," the PSA said.

The top three industry divisions were furniture (88.7 percent), transport equipment (86.0 percent), and rubber and plastic products (82.4 percent).

Over a quarter — 108 or 26.7 percent — of the 404 establishments that participated in the PSA survey said they operated at full capacity, defined as 90 to 100 percent.

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