Philippines Manufacturing PMI Dips into Contraction

The S&P Global Philippines Manufacturing PMI slipped to 49.9 in September 2025 from 50.8 in August, moving into contraction territory albeit only slightly for the first time since March and just the third time in over four years. The downturn reflected renewed declines in output and new orders, with sales falling amid weaker domestic demand, poor weather and rice import restrictions. Still, foreign orders improved, partly offsetting the weakness. Manufacturers raised purchasing activity and input stocks, though at a softer pace, while finished goods inventories fell as backlogs were reduced. Employment conditions remained subdued, with little sign of job growth despite ongoing activity. On prices, input cost inflation eased from August’s eight month high but was still the second fastest this year, leading to only marginal rises in selling prices. Business confidence, while slightly softer, remained among the strongest since late 2024, supported by expectations of stronger sales ahead.