A key measure of manufacturing activities surged to its highest level since April 2022 and matched the pre-pandemic peak, S&P Global said Thursday. An index above 50.0 indicates expansion.
The Philippine S&P Global Manufacturing Purchasing Managers Index (PMI) hit 54.3 in December, its 16th consecutive month of growth, reflecting stronger manufacturing momentum during the holiday season.
Both output and new orders rose sharply and at broadly similar rates, marking the strongest growth in each since April 2022. Purchasing activity also increased as firms responded to higher demand and greater production requirements, the report said.
It said, however, December marked a marginal drop in employment numbers, as production efficiency allowed some firms to trim their staffing levels.
“The Filipino manufacturing sector ended 2024 on a positive note, with further improvements in demand resulting in sharp and significant increases in new orders and output. Firms also expanded their purchasing activity to meet production requirements. December highlighted a moderation in inflationary pressures, marking a shift from the spike observed in November. In fact, cost burdens and output charges rose at historically muted rates,” said Maryam Baluch, economist at S&P Global Market Intelligence.
“While production efficiency allowed manufacturers to stay on top of tasks at hand, it also led to a slight drop in employment, thereby ending a three-month streak of job creation. However, this could be a temporary blip, especially if demand remains resilient as anticipated throughout 2025,” said Baluch.
The December PMI rose from 53.8 in November, signaling a strong improvement in the health of the Filipino manufacturing sector, and was the joint-strongest since November 2017, alongside that seen in April 2022.
The two largest components of the PMI calculation (the output index and new orders index) positively influenced the headline figure in December, S&P Global said.
Sharp expansions in both new orders and output were reported, supported by anecdotal evidence of robust underlying demand trends, product diversification and new client acquisitions.
It also noted a renewed rise in demand from international markets, marking the first increase in new export orders in five months.
