Philippine manufacturing activity contracted in March for the first time in 19 months, a survey showed, as new orders and output declined.
The S&P Global Philippines Manufacturing Purchasing Managers’ Index (PMI) fell to 49.4 in March from 51.0 in February and 52.3 in January, dropping below the 50.0 level that separates growth from contraction.
The March reading marked the steepest decline in the sector since August 2021, ending an 18-month period of expansion as the first quarter of 2025 concluded. It was only the second time in over three years that the index has fallen below 50.0.
Manufacturers reported a modest decrease in output, halting an 11-month run of growth, due to lower factory orders and new sales. Increased competition and fewer clients contributed to the slowdown, with a slight drop in orders from foreign customers.
Employment levels were unchanged in March, as manufacturers had sufficient staff to meet current demand. Input prices saw a modest increase, leading companies to raise their selling prices.
