Manufacturing business conditions in the Philippines deteriorated in November 2025, with factory activity contracting at its steepest rate since August 2021, according to the latest S&P Global Purchasing Managers’ Index (PMI) survey.
The headline S&P Global Philippines Manufacturing PMI fell to 47.4 in November from 50.1 in October. A reading below 50 indicates a contraction in operating conditions compared to the previous month.
The drop was reflected across all five components of the index, with new orders and output having the greatest negative influence.
Output and new orders both contracted at their fastest rates since August 2021, led by weak customer demand. New orders fell for the third consecutive month, and new export orders declined for the second month running, sinking at the greatest extent since September 2024.
Production also fell for the third month in a row, with many businesses citing that a typhoon had caused disruptions to their activities.
The decline in new orders led to reduced demand for inputs, with purchasing activity falling for the second straight month, the first back-to-back decline in over four years.
This resulted in the first depletion of input stocks in five months, with the rate of destocking being the fastest in just over five years. Manufacturers also shed staff for the first time since May, albeit marginally, through layoffs and the non-renewal of contracts.
Despite the immediate challenges, manufacturers expressed increased optimism for the next 12 months, with overall sentiment being the strongest since November 2024. Firms anticipate higher future output from anticipated new projects, increased orders, economic development, new customers and aggressive marketing.
Input price inflation eased to a four-month low, remaining well below the long-run trend, which was attributed to lower demand for raw materials. Output prices rose slightly, reversing a fall in October.
“Manufacturing conditions in the Philippines deteriorated sharply in November according to the latest S&P Global PMI survey,” said Trevor Balchin, economics director at S&P Global Market Intelligence.
“Output and new orders contracted at their fastest rates since August 2021, driven by weak customer demand. Exports, purchasing and employment also declined, reflecting broader challenges in the sector,” said Balchin.
“There were signs of promise however as manufacturers expressed increased optimism for the next 12 months, anticipating growth due to new projects and improved economic conditions. Overall, while the manufacturing sector faces immediate challenges, the outlook suggests cautious optimism for growth moving forward,” he said.
