Philippine manufacturing PMI at highest since Nov 2017

The Philippine manufacturing sector expanded at its fastest pace since November 2017 in December, according to S&P Global's latest survey.

Higher output and new orders drove the headline S&P Global Philippines Manufacturing PMI to 54.3 from 53.8 in November, marking the strongest improvement in operating conditions since April 2022.

Maryam Baluch of S&P Global Market Intelligence noted that robust demand trends led to significant increases in new orders and production, with export orders rising for the first time in five months.

Manufacturers reported a renewed increase in export orders supported by product diversification and new client acquisitions, while purchasing activity expanded to meet production requirements.

Despite rising costs for materials and suppliers, inflationary pressures moderated, with cost burdens and output charges increasing at historically low rates compared to previous spikes.

Employment saw a slight decrease as firms managed their workloads efficiently but this could be temporary if demand remains strong in 2025.

Firms remain optimistic about growth prospects in 2025, anticipating further strengthening of demand trends and plans for launching new products.