Philippine factory output grew 1.2% year-on-year in January 2026, slowing due to declines in key sectors despite gains in tech and beverages.

Philippine factory output grew 1.2% year-on-year in January 2026, slowing from 2% in December and 3.2% in January 2025, according to the PSA. Declines in food, transport equipment, and non-metallic mineral products drove the slowdown, with food output falling 0.5%. Despite a 4.7% month-on-month rise, business confidence dropped sharply. Growth was supported by computer, electronic, and beverage sectors. Capacity utilization rose slightly to 77.8%. Rising input costs, political uncertainty, and global tensions pose risks to future manufacturing performance.