PPI for manufacturing climbs 1.5% in January

Title Manufacturing Growth Spurt 5 Key Insights on PPI for a Stronger Economy in 2026

The Philippine manufacturing sector kicked off 2026 with a promising start, and understanding the trends driving this growth is essential. The producer price index (PPI) is a vital indicator of inflation and economic activity, providing valuable insights into the average change in selling prices manufacturers and producers receive for their goods over time.

In this post, we'll dive into 5 key takeaways from the latest PPI data, highlighting the sectors that are driving growth and what they mean for the economy.

Insight #1 Food Manufacturing Leads the Charge

The PPI for manufacturing grew by a respectable 1.5% in January 2026, with food manufacturing being the primary contributor to this growth. This sector saw a 1.3% annual increase, accounting for 38.5% of the overall rise. The importance of the food industry in the economy is evident, as it provides sustenance and employment opportunities for many Filipinos.

Insight #2 Computer and Electronics Boost

Another area that experienced significant growth was the manufacture of computer, electronic, and optical products. This sector expanded by 2.6% year-on-year, up from 0.8% in December 2025. As technology continues to shape our world, it's essential for manufacturers to keep pace with these advancements.

Insight #3 Machinery and Equipment on the Rise

Machinery and equipment except electrical also saw a notable increase of 2.2% year-on-year, up from 0.4% in December 2025. This growth is consistent with the increasing demand for machines and tools to support manufacturing activities.

Insight #4 Sector-Specific Insights

While some sectors experienced contractions, others showed signs of recovery. For instance, the manufacture of chemicals and chemical products saw a 1.1% year-on-year increase, while the sector of leather products grew by 2.3%. These sector-specific insights can provide valuable information for businesses looking to capitalize on growth opportunities.

Insight #5 Month-on-Month Growth

In addition to the annual growth, the PPI also recorded a month-on-month increase of 0.5% in January 2026, reversing the previous year's decline. This growth is a welcome sign that the manufacturing sector is moving in the right direction.

As we look ahead to 2026, it's essential to continue monitoring these trends and identifying areas for growth and improvement. By doing so, we can work towards building a stronger economy that benefits all Filipinos.

Conclusion

The PPI data for January 2026 provides valuable insights into the manufacturing sector's performance. With food manufacturing leading the charge, followed by computer and electronics, and machinery and equipment, it's clear that these sectors are driving growth. As we move forward, it's crucial to continue supporting these industries and identifying areas where they can thrive.

By doing so, we can create a more robust economy that benefits all Filipinos.

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Edward Lance Arellano Lorilla

CEO / Co-Founder

Enjoy the little things in life. For one day, you may look back and realize they were the big things. Many of life's failures are people who did not realize how close they were to success when they gave up.