The Philippine manufacturing sector sustained its growth in January 2025, on increased order and production, S&P Global said Monday.
S&P said the PMI for the Philippines—a composite single-figure indicator of manufacturing performance—reached 52.3 in January, down from December’s 32-month high of 54.3. While signaling a solid improvement in the health of the Filipino manufacturing conditions, the headline index was at a five-month low, it said.
PMI is a weighted average of five indices: new orders (30 percent), output (25 percent), employment (20 percent), suppliers’ delivery times (15 percent) and stocks of purchases (10 percent). A reading above 50 indicates an overall increase compared to the previous month, and below 50 an overall decrease.
S&P said new orders and output continued to rise in the Philippines, albeit the rates of growth moderating from December’s recent highs.
Employment remained broadly unchanged for a second straight month. Firms were more active in raising their purchasing activity, however, with businesses recording another sharp monthly increase.
Holdings of purchases and finished items were also raised in anticipation of greater sales in the coming months.
Cost pressures remained historically subdued. Input prices rose at the weakest pace in five months, while output charges rose at a slight stronger pace than seen in December.
“The Filipino manufacturing sector started the year with a further and strong improvement in demand. Output grew again, albeit at a pace which notably weakened from December. If demand trends continue to improve as they have done, then employment growth could be on the cards in the months ahead,” said Maryam Baluch, economist at S&P Global Market Intelligence.
“The election year is also likely to provide a general boost to the manufacturing sector, as highlighted by some survey respondents. We could see 2025 shaping up to be another strong year of growth for the Philippines manufacturing sector with industrial production growth forecasted at 3.9 percent in 2025, up from 2.4 percent in 2024. In fact, the anticipation of greater demand has already prompted goods producers to increase their inventory levels,” said Baluch.