Philippines Factory Activity Falls for First Time in 5 Months

2026-10-01 00:55 By Judith Sib-at 1 min. read

The S&P Global Philippines Manufacturing PMI fell to 49.6 in September 2026 from August’s over nine-year high of 54.9, signaling the first deterioration in manufacturing conditions since April.

Output declined for the first time in nine months and at the sharpest pace since November 2025, amid weaker new order inflows and increased international competition, with new export orders also falling.

Manufacturers subsequently cut jobs again, albeit only slightly, while work backlogs dropped at the fastest pace since April.

Firms also reduced input buying for the first time since May and cut both pre- and post-production inventories, with the latter falling at the quickest pace in five months.

Supplier delivery times lengthened sharply and to one of the greatest degrees in almost two years.

On prices, output charge inflation accelerated despite input cost inflation easing to a three-month low.

Business confidence fell notably from August’s 21-month high, falling to its lowest since January.



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Philippines Factory Activity Falls for First Time in 5 Months
The S&P Global Philippines Manufacturing PMI fell to 49.6 in September 2026 from August’s over nine-year high of 54.9, signaling the first deterioration in manufacturing conditions since April. Output declined for the first time in nine months and at the sharpest pace since November 2025, amid weaker new order inflows and increased international competition, with new export orders also falling. Manufacturers subsequently cut jobs again, albeit only slightly, while work backlogs dropped at the fastest pace since April. Firms also reduced input buying for the first time since May and cut both pre- and post-production inventories, with the latter falling at the quickest pace in five months. Supplier delivery times lengthened sharply and to one of the greatest degrees in almost two years. On prices, output charge inflation accelerated despite input cost inflation easing to a three-month low. Business confidence fell notably from August’s 21-month high, falling to its lowest since January.
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