Philippine manufacturing PMI at 52.3 in Jan, slowest pace since Aug

The S&P Global Philippine Manufacturing Purchasing Managers' Index (PMI) reported that local factories began 2025 with solid performance but at the slowest pace in five months, maintaining an index score above 50.

In January 2025, the PMI stood at 52.3, down from December's 54.3 but still indicating sector improvement despite being the lowest reading since August 2024.

Manufacturers experienced a strong demand that contributed to increased output, although production activities were tempered by competition and higher raw material costs.

Optimistic manufacturers responded by increasing pre- and post-production inventories in anticipation of continued growth, with stocks of finished goods recording a fresh increase following a sharp decline in December.

Despite flat hiring trends in the previous month, S&P Global economist Maryam Baluch forecasts industrial production growth at 3.9 percent for 2025, up from 2.4 percent in 2024, driven by expectations of stronger market demand and the upcoming election period.