Philippines Manufacturing PMI Returns to Expansion

The S&P Global Philippines Manufacturing PMI rose to 52.9 in January 2026 from 50.2 in December, marking the highest level since April 2025. New orders continued to increase, supported by a renewed rise in export orders. As a result, production returned to expansion territory for the first time in five months. Higher production requirements prompted firms to expand their workforce after two consecutive months of modest declines, helping to reduce backlogs of work. Additionally, purchasing activity grew at its fastest pace in a year, while input inventories rose for the first time in three months. Price pressures remained subdued, with input cost inflation broadly unchanged from December’s recent low and only marginal overall, while prices charged rose only slightly. However, business confidence for the year ahead deteriorated sharply, recording its second-weakest reading on record, behind that seen in March 2020.

The S&P Global Philippines Manufacturing PMI rose to 50.2 in December 2025 from 47.4 in November, moving back above the neutral 50 threshold. The modest improvement in manufacturing conditions was driven by a renewed increase in new orders, which rose for the first time in four months, leading firms to resume purchasing activity. While output remained in contraction, the pace of decline eased, and employment conditions also showed signs of stabilization, with job losses moderating from the previous month. On prices, input cost inflation softened to its weakest in 19 months, even as firms slightly accelerated output price increases by passing higher material costs on to customers. Looking ahead, manufacturers remained optimistic about output growth over the coming year, supported by expectations of new projects, product launches, business expansion plans, and firmer domestic demand, although overall sentiment edged down from November’s recent 12-month high.

The S&P Global Philippines Manufacturing PMI slipped to 47.4 in November 2025 from 50.1 in the previous month, signaling a return to contraction territory. It marked the sharpest deterioration since August 2021, as both output and new orders fell for the third consecutive month and at the fastest pace since that period, mainly due to disruptions to business activity caused by recent typhoons. Moreover, manufacturers reduced staffing for the first time since May, although the overall rate of job losses remained modest, reflecting a combination of layoffs and non-renewal of contracts. On the price front, inflationary pressures remained relatively subdued, with input costs easing to a four-month low while output prices rose slightly. Nevertheless, manufacturers showed increasing confidence in output growth over the year ahead. Overall sentiment was the strongest since November 2024, supported by expectations of new projects, higher orders, economic growth, and expanded marketing efforts.