The Philippine manufacturing sector bounced back in April 2025, reversing the deterioration in operating conditions observed in March, according to the latest PMI released by S&P Global.
Both output and new orders reported fresh increases in April, with the respective rates of growth sharp and historically strong. Purchasing activity also rose at a stronger pace, while staffing levels remained steady for the second consecutive month.
However, confidence took a hit in April, as goods producers in the Philippines indicated a notably less optimistic outlook for output compared to the previous month, the report said.
The degree of confidence was the second-lowest in the series history, which dates back to January 2016, only surpassing that observed in March 2020.
The PMI– a composite single-figure indicator of manufacturing performance – posted 53.0 in April, signaling a renewed improvement in the health of the Filipino manufacturing sector. This was up from March’s reading of 49.4, which was the lowest for 43 months and indicated a modest deterioration in operating conditions.
“The Filipino manufacturing sector commenced the second quarter of the year on a solid note, experiencing renewed growth in output and new orders, alongside an increased level of purchasing activity. Encouragingly, inflationary pressures also remained contained and historically subdued,” said Maryam Baluch, economist at S&P Global Market Intelligence.
“However, companies have shown caution in expanding their workforce numbers, maintaining staffing levels for the second consecutive month. Furthermore, confidence within the sector has declined to its second-lowest in the series history. Some respondents indicated that the rise in activity during April was partially influenced by the upcoming elections, suggesting that post-election, customer demand may be less buoyant,” said Baluch.
Meanwhile, international demand for goods produced by the Philippines manufacturing sector remained broadly stagnant for a second consecutive month in April. The seasonally adjusted New Export Orders Index was unchanged from the previous month, printing just below the neutral 50.0 mark.
Higher output needs led manufacturers to raise their buying activity at an accelerated pace in April. Growth has now been recorded in each of the last 17 months.