PH manufacturing contracts in September

The Philippine manufacturing sector returned to negative category in September as it posted its first contraction in six months amid drops in output and new orders, results of the latest survey conducted by S&P Global released on Wednesday showed.

The headline S&P Global Philippines Manufacturing PMI stood at 49.9 in September, down from the 50.8 in August, and below the 50.0 threshold that separates expansion and contraction for the first time in six months since the 49.4 in March.

“The Philippine PMI survey shows the manufacturing sector moving into negative territory at the end of the third quarter which, despite indicating only a fractional decline, has been highly unusual in the sector’s post-pandemic history,” S&P Global Market Intelligence senior economist David Owen said.

“New orders and output decreased slightly, as firms mentioned a fall in client numbers and a modest drop in production from the suspension of rice imports,” he added.

The decline in sales was also the first in six months, as businesses posted lower customer numbers but order books with foreign clients continued to improve.

Manufacturers increased their buying of raw materials and other key components for the month, boosting the stocks of purchased goods. Post-production inventories, on the other hand, declined due to lower output amid efforts to lower backlogs of work.

“However, with overall sentiment in the year-ahead remaining upbeat in September, and purchasing quantities increasing, manufacturers appear hopeful that the dip in sector performance is temporary,” Owen said.

The Philippine Statistics Authority (PSA) is scheduled to release official figures on the monthly integrated survey of selected industries (MISSI) for September on November 7, 2025. —VAL, GMA Integrated News