The Philippines Manufacturing PMI fell to 50.1 in May from 53.0 in April, signalling a broad stagnation in operating conditions, according to the latest data from S&P Global.
Output contracted and export orders declined at the fastest pace since November 2023, reversing April’s growth momentum.
Key findings include:
- New orders continued to rise, but at a slower pace than in April.
- Export demand deteriorated, with a fresh drop in overseas sales.
- Output declined for the second time in three months amid softer demand.
- Employment fell, as firms delayed replacing staff lost to voluntary resignations — the sharpest drop in 11 months.
- Input buying increased marginally, but at the weakest rate in 18 months.
Input inventories and finished goods were both drawn down, with some firms relying on existing stock to fulfil orders. - Supplier delivery times lengthened slightly due to material delays.
- Price pressures remained mild despite a slight uptick in cost and charge inflation.
The Philippines’ manufacturing sector cooled sharply in May after a strong April, reflecting weaker domestic and external demand. While inflation remains under control, the decline in output, exports, and employment suggests that the industry may struggle to maintain growth momentum without a rebound in global trade conditions.
For comparison, over the same period Vietnam’s PMI rose to 49.8, up from 45.6 in April and Indonesia’s PMI jupmed to 47.4, up from 46.7.
See also: Manufacturing in the Philippines 2025: Key Sectors, FDI & Investment Incentives