The Philippines’ manufacturing sector was steady in October as the S&P Global manufacturing purchasing managers’ index (PMI) rose marginally to 50.1 from 49.9 in September, indicating broadly stable operating conditions after a brief contraction.

Despite the slight rebound, the underlying data pointed to contrasting movements. New orders and export orders both recorded sharper declines, with panellists citing subdued domestic demand, weaker overseas interest, and weather-related disruptions affecting production. Output remained in contraction territory, though the pace of decline eased to only a marginal level, S&P Global said in a press release.

Purchasing activity fell for the first time in nearly two years, ending a 22-month growth streak, while delivery times lengthened to the greatest extent in three months. Yet, manufacturers displayed renewed optimism about future output and increased staffing levels, suggesting confidence in a gradual recovery.

The Philippines’ manufacturing sector stabilised in October, with the S&P Global PMI inching up to 50.1 from 49.9, signalling broadly steady conditions.
Output and new orders remained weak amid sluggish domestic and export demand, while purchasing activity declined for the first time in nearly two years.
Yet, cost pressures eased, staffing rose, and business confidence improved.

On pricing, cost pressures softened further in October, marking the weakest rate of input inflation in three months. Firms that reported higher costs attributed them to rising supplier and material prices.

The October PMI thus reflected a manufacturing sector in balance—holding steady between contraction and expansion—amid challenging demand conditions but improving business sentiment.

“A closer examination of the Philippines PMI data revealed a mixed picture in October. The two largest segments, new orders and output, indicated further declines. Additionally, fresh contractions were observed in new export orders and purchasing activity, highlighting underlying demand conditions,” said Maryam Baluch, economist at S&P Global Market Intelligence. “On a more positive note, manufacturers grew more optimistic about their growth prospects for output in the coming year. Companies also continued increasing their workforce numbers, with the latest rise in staffing numbers the strongest in three months.”

“Furthermore, cost pressures remain subdued and ebbed further, providing manufacturers with some flexibility in price setting. In response, several have opted to reduce their selling prices, in an effort to stimulate demand in a currently subdued market environment,” added Baluch. “The sector has now remained in sluggish territory for most of the second half of 2025 so far. Whether it can see a notable recovery in performance in the coming months will depend greatly on efforts to stimulate consumer demand.”

Fibre2Fashion News Desk (SG)

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