Philippine manufacturing growth posts slight deceleration in August

The Philippine manufacturing sector posted a slight deceleration in August to bring job creation to a halt during the month, results of the latest survey conducted by S&P Global released on Monday showed.

The headline S&P Global Philippines Manufacturing PMI stood at 50.8 in August, slightly lower than the 50.9 in July, but still above the 50.0 threshold that separates expansion from contraction.

“The latest PMI data for the Philippines manufacturing sector once again indicated a subdued performance, with growth rates for output and new orders remaining below their historical averages,” S&P Global Market Intelligence economist Maryam Baluch said in a commentary.

“Furthermore, while overall sentiment in the year-ahead outlook remained optimistic and even strengthened compared to the previous month, confidence fell short of the long-run average,” she added.

Manufacturing output grew for the third straight month, with growth hitting a four-month high as respondents pointed to new customer acquisitions and improved underlying demand trends, along with the strengthening of foreign demand for goods.

Data showed, however, that manufacturing employment was stable and ended a two-month sequence of job growth, effectively increasing the backlogs of work which saw the fastest accumulation in six months.

Manufacturers said they tapped into their post-production inventories to fulfill new orders, leading to a modest drop in stocks of finished goods during the month.

“(S)ubdued cost pressures, coupled with manufacturers’ efforts to control their pricing in a bid to remain competitive, could provide the boost firms need to regain sales momentum,” Baluch said.

The confidence index ticked up for the fourth straight month to mark the highest since November 2024, as firms were hopeful that demand will improve and support production moving forward.

Survey responses were collected in the second half of the month, taking into account responses from purchasing managers in a panel of around 400 manufacturers. The PMI is a weighted average of new orders, output, employment, suppliers' delivery times, and stocks of purchases.

The Philippine Statistics Authority (PSA) is scheduled to release official government figures on manufacturing for the month of August on October 7, 2025. — RSJ, GMA Integrated News