Philippine Manufacturing Activity Shrinks in April

2026-05-04 00:46 By Judith Sib-at 1 min. read

The S&P Global Philippines Manufacturing PMI fell to 48.3 in April 2026 from 51.3 in March.

This marked the first deterioration in the manufacturing sector since last November, dragged by a sharp decline new orders, which fell for the first time in five months and at the steepest rate since August 2021.

Export orders also dropped at their fastest pace since mid-2020.

Production levels stagnated.

On prices, input cost inflation accelerated to its highest since December 2022, driven by higher energy and shipping costs linked to the Middle East war.

Selling price inflation hit a 41-month high.

As a result, firms cut buying activity for a second month and reduced staffing levels for the first time this year.

Still, firms managed workloads, as reflected in a renewed fall in backlogs.

Input lead times also lengthened solidly.

Despite these headwinds, business confidence for the year ahead rose to a 17-month high, buoyed by expectations of a growing client base and improving demand trends.



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Philippine Manufacturing Activity Shrinks in April
The S&P Global Philippines Manufacturing PMI fell to 48.3 in April 2026 from 51.3 in March. This marked the first deterioration in the manufacturing sector since last November, dragged by a sharp decline new orders, which fell for the first time in five months and at the steepest rate since August 2021. Export orders also dropped at their fastest pace since mid-2020. Production levels stagnated. On prices, input cost inflation accelerated to its highest since December 2022, driven by higher energy and shipping costs linked to the Middle East war. Selling price inflation hit a 41-month high. As a result, firms cut buying activity for a second month and reduced staffing levels for the first time this year. Still, firms managed workloads, as reflected in a renewed fall in backlogs. Input lead times also lengthened solidly. Despite these headwinds, business confidence for the year ahead rose to a 17-month high, buoyed by expectations of a growing client base and improving demand trends.
2026-05-04
Philippine Manufacturing Growth Cools in March
The S&P Global Philippines Manufacturing PMI fell to 51.3 in March 2026 from 54.6 in February, marking a three-month low. Softer expansions in output and new orders were attributed largely to the war in the Middle East, which also led to a modest decline in new export sales. As a result, firms broadly paused purchasing activity, while inventories of pre-production items fell modestly for the first time in four months. Input prices surged amid higher energy costs and material shortages, causing operating expenses and factory gate charges to rise sharply. Employment growth continued for a third consecutive month but at the slowest pace in this sequence, while backlogs of work increased at the fastest rate in four months due to delays in receiving inputs. Despite these challenges, manufacturers’ sentiment regarding the 12-month outlook improved to a four-month high, with firms hopeful that easing geopolitical tensions and demand conditions will support growth in the year ahead.
2026-04-01
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.
2026-03-02