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)

By June ****, the banking sector in Bangladesh was standing on precarious ground: total loans had reportedly climbed to Taka **,**,*** crore, and yet in just three months, defaults ballooned by Taka ***,*** crore, while on a year-on-year basis, the increase in non-performing loans (NPLs) hit Taka ***,*** crore.

According to reports, in June ****, the default loan figure stood at Taka ***,*** crore, indicating that defaults have nearly tripled in a single year.

The recent series of bilateral trade agreements between the US and several Asia-Pacific (APAC) countries have reduced uncertainty around the outlook for Asia’s exporters and could provide a slight lift to gross domestic product (GDP) over the next few years for the countries involved, according to Fitch Ratings.

Between October 20 and 30, the US finalised trade pacts with China, Japan, Korea, Vietnam, Malaysia, Thailand, Australia, and Cambodia. The most notable change is the halving of the 20 per cent US tariff on Chinese goods linked to fentanyl-related categories, effectively lowering China’s average tariff rate by around 10 percentage points (pps), Fitch said in its latest commentary.

Both nations have also agreed to pause new restrictions on critical exports—such as China’s rare earth curbs and the US licensing expansions—creating a temporary reprieve in escalating trade tensions.

US-APAC trade deals with eight nations, including China, Japan, Korea, and Vietnam, ease uncertainty and may modestly lift regional GDP, according to Fitch Ratings.
The halving of US tariffs on Chinese goods and paused export curbs could boost confidence and investment.
Benefits will be gradual and uneven, with India still excluded and fiscal risks rising in some APAC economies.

Fitch expects the new arrangements to provide a mild uplift to growth in China, the US, and indirectly to key export-oriented economies like Korea and Vietnam during 2026–2027. Greater tariff stability is anticipated to restore business confidence, enabling medium- and long-term supply-chain investments, particularly in Malaysia, Thailand, and Vietnam. Meanwhile, new commitments on rare earth sourcing could attract investment into Southeast Asia and Australia, though the macroeconomic impact will be modest in the near term.

Fitch foresees Korea’s export growth slowing in 2026 due to lingering US tariffs and softer demand from China. Japan and Korea’s promised investments in US industries may also pressure foreign-exchange reserves and carry sovereign credit implications if executed aggressively.

Several APAC economies, including Indonesia, Korea, the Philippines, and Thailand, have adopted looser fiscal policies to offset risks from US tariff actions. Fitch warned that such fiscal expansion could hinder debt consolidation efforts, a key rating sensitivity for these sovereigns.

India remains outside the recent deal framework, leaving its exports exposed to a 50 per cent US tariff—significantly higher than for most other Asian partners. The absence of a deal may weaken its competitiveness, though discussions for a future accord are ongoing.

Fitch concluded that while the US–APAC trade deals mark a stabilising shift after years of volatility, the benefits will be gradual and uneven. Key uncertainties—tariff implementation, investment follow-through, and geopolitical risks—will determine whether the agreements translate into sustained regional growth.

Fibre2Fashion News Desk (SG)