Philippine Manufacturing PMI Hits Over 8-Year High

The S&P Global Philippines Manufacturing PMI increased to 54.6 in February 2026 from 52.9 in January. This marked the third consecutive month of growth and the strongest performance since November 2017. Manufacturers reported that sustained growth in new orders led them to raise production levels, achieving the quickest pace of output growth since November 2018. As a result, firms expanded their purchasing activity at the sharpest rate since January 2025 and stepped up inventory-building efforts. They also increased staffing numbers for a second consecutive month; however, these measures were not enough to prevent a renewed accumulation of work backlogs, which rose at the fastest pace in three months. On the pricing front, manufacturers noted falling operating costs, which allowed them to reduce their own charges. Finally, sentiment regarding the 12-month outlook for output improved, rebounding notably from the recent low recorded in the previous month.

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.