Fashion
Philippines manufacturing outlook improves as Dec PMI tops 50
The Philippines’ manufacturing sector has ended the fourth quarter on a cautiously positive note, with the latest Purchasing Managers’ Index (PMI) data pointing to early signs of recovery. The Manufacturing PMI rose to 50.2 in December from 47.4 in November, moving back above the neutral 50 mark and signalling a slight improvement in overall operating conditions after a sharp deterioration in the previous month.
Philippines manufacturing has showed early recovery signs as PMI rose to 50.2 in December from 47.4 in November.
New orders grew for the first time since August, easing output and job declines.
Export demand weakened sharply, while purchasing activity and inventories stabilised.
Cost pressures softened, output prices rose modestly, and firms remained cautiously optimistic for 2026.
Improved demand conditions underpinned the uptick, as total new orders increased for the first time since August, ending a three-month period of contraction. While the pace of growth was modest, it was the strongest recorded since April.
In contrast, foreign demand remained a drag on performance, with new export orders falling sharply and the relevant index slipping further below 50, marking the steepest decline in around 15 months, S&P Global said in a release.
The rise in new business helped ease, but not reverse, the downturn in production. Output continued to fall moderately in December, extending the current contraction to four months—the longest such sequence since 2021.
Even so, manufacturers responded to higher order inflows by stepping up purchasing activity for the first time in three months, with input buying rising at its fastest pace since August. This helped stabilise inventories, with pre-production stocks unchanged after a sharp drawdown in November and finished goods inventories rebuilding slightly.
Labour market conditions also showed tentative signs of stabilisation. Employment declined for a second consecutive month, but the rate of job shedding slowed significantly and was marginal overall. Some firms continued to reduce headcount due to weak production requirements, while others increased staffing in anticipation of stronger demand in the months ahead.
“New order volumes rose for the first time in four months, which helped partly ease the ongoing downturn in production. Fuelled by this positive direction, companies increased their purchasing activity for the first time since September, while the labour market showed signs of stabilising,” Maryam Baluch, economist at S&P Global Market Intelligence, said commenting on the latest survey results.
At the same time, input delivery times lengthened, reversing November’s improvement, as port congestion and adverse weather disrupted supply chains, although supplier performance deteriorated only slightly.
On the cost front, operating expenses rose at the slowest pace in 19 months, reflecting subdued input price inflation despite higher material costs for some firms. Output prices increased at a slightly faster rate than in November as manufacturers passed on part of the cost burden, though price rises remained modest by historical standards.
Looking ahead, firms expect output to rise over the course of 2026, supported by new projects, product launches and expansion plans, although overall optimism eased slightly from November’s recent one-year high.
“That said, the improvement was tepid across the sector, and its sustainability will largely depend on whether demand can be maintained and further bolstered, bringing growth back to production. Additionally, the sector faces notable headwinds from sharply declining export market conditions, which are limiting the potential for broader expansion. Consequently, at present, the manufacturing sector’s growth is primarily being driven by domestic demand, with external markets offering little support,” Baluch added.
Fibre2Fashion News Desk (HU)
Total apparel shipments fell by 2.66 per cent year on year to $425.44 million in January 2026, compared with $437.07 million in the corresponding month of 2025. The performance underscored uneven global demand conditions that continue to influence sourcing patterns and order flows for Sri Lankan manufacturers.
Sri Lanka’s apparel exports declined 2.66 per cent YoY to $425.44 million in January 2026 amid weak global demand.
Shipments to the US and EU softened, while the UK remained stable with slight growth.
Other markets saw sharper contraction.
JAFF highlighted DCTS benefits and tariff changes while suggesting diversification and efficiency to sustain competitiveness.
Exports to the United States, the country’s largest market, decreased by 2.73 per cent to $165.11 million, while shipments to the European Union excluding the United Kingdom, declined by 1.93 per cent to $126.99 million. In contrast, exports to the UK remained broadly stable, rising marginally by 0.23 per cent to $61.71 million. Apparel shipments to other markets dropped more sharply by 6.07 per cent to $71.63 million.
JAAF noted that the UK’s steady performance offers a constructive signal for the sector, particularly as the revised Developing Countries Trading Scheme (DCTS), effective January 1, 2026, is expected to enhance sourcing flexibility and strengthen Sri Lanka’s competitive position in the British market.
The industry body also highlighted the introduction of a uniform 10 per cent temporary tariff in the US market as a relatively supportive development, reducing the impact of previously higher country-specific rates and providing greater short-term pricing predictability for exporters.
Commenting on the January outcome, JAAF said the moderate decline reflects ongoing volatility in global demand. The association emphasised that the industry remains committed to reinforcing resilience through market diversification, product innovation and operational efficiency, while collaborating with stakeholders to sustain Sri Lanka’s standing as a reliable apparel sourcing destination.
Fibre2Fashion News Desk (KUL)
Profitability remained robust despite a more challenging trading backdrop. Group EBIT stood at €913.4 million, broadly stable year on year (YoY), translating into a 29.2 per cent margin versus 29.5 per cent in FY24. Net profit reached €626.7 million compared with €639.6 million a year earlier, reflecting higher net financial expenses, while maintaining a 20 per cent margin.
Moncler has reported revenues of €3.13 billion (~$3.69 billion) in FY25, up 3 per cent at constant exchange rates, with net profit of €626.7 million (~$739.5 million).
Asia led regional growth, while DTC channels strengthened across brands.
Q4 revenues rose 7 per cent, driven by robust Moncler and Stone Island performance, as the group prepares for continued investment and leadership transition.
Regionally, the group recorded strong momentum in Asia, where revenues rose 7 per cent at constant exchange rates to €1.42 billion, supported by demand in China and Korea and a recovery in tourist flows. The Americas increased 5 per cent to €391.1 million, whereas Europe, Middle East and Africa (EMEA) declined 3 per cent amid subdued tourism-related traffic, Moncler said in a press release.
Channel performance highlighted the continued shift towards direct engagement. Moncler’s direct-to-consumer (DTC) revenues rose 4 per cent to €2.36 billion, accounting for nearly 87 per cent of brand sales, while wholesale declined 4 per cent as the group continued to enhance distribution quality. Stone Island’s DTC channel expanded 11 per cent to €226.4 million, whereas wholesale decreased 4 per cent.
The group’s financial position strengthened further, with net cash reaching €1.46 billion at year-end after dividend payments of €353.2 million. The board proposed a dividend of €1.4 per share and approved the consolidated sustainability statement.
Remo Ruffini, chairman and CEO of Moncler, said: “Moncler and its board of directors wish to express their most sincere thanks to Gabriele Galateri di Genola for his dedication and the highly valuable contribution he has made throughout his more than ten-year term of office. His significant experience, the vision developed over many years in senior leadership positions at leading industrial and financial organisations, as well as his constant commitment to good governance, have represented a key point of reference for our work. With gratitude, we extend our best wishes to Gabriele Galateri di Genola for the future.”
In the fourth quarter (Q4), the group delivered accelerated momentum, with revenues rising 7 per cent at constant exchange rates to €1.29 billion (~$1.52 billion). Moncler brand revenues reached €1.17 billion, up 6 per cent, while Stone Island posted €123.1 million, surging 16 per cent with double-digit growth across all regions.
Moncler’s DTC channel advanced 7 per cent despite a demanding comparable base in the quarter, supported by Asia and the Americas, while wholesale returned to growth, rising 2 per cent. Stone Island recorded broad-based acceleration, with DTC revenues increasing 16 per cent and wholesale climbing 17 per cent, partly reflecting delivery timing shifts from the previous quarter.
Looking ahead, the group emphasised continued investment in brand development and organisational strengthening, including the appointment of Leo Rongone as group chief executive officer from April 2026, as it seeks to sustain long-term growth and value creation.
Fibre2Fashion News Desk (SG)
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