Philippine Manufacturing Slows Down in May, S&P Global Reports

Manufacturing activity in the Philippines slowed in May 2025, according to the latest Purchasing Managers’ Index (PMI) data from S&P Global.

The country’s manufacturing PMI dropped to 50.1 from 53.0 in April, just slightly above the 50.0 mark that signals expansion. This indicates near-stagnant operating conditions in the sector.

S&P Global economist Maryam Baluch noted that while new orders continued to rise, their growth was modest and weighed down by declines in output, employment, and inventory levels. Delays in receiving raw materials also led to a depletion in input stocks for the first time in three months.

Foreign demand saw a sharper decline, with new export orders falling amid rising global trade tensions.

The manufacturing workforce also contracted, with the most significant job losses in 11 months attributed to resignations and unfilled roles. This led to an increase in backlogs, although the rate of accumulation remained mild.

Despite the slowdown, inflationary pressures stayed subdued, providing a potential cushion for demand and stability amid global uncertainties.

The data was gathered from approximately 400 manufacturing firms in the latter half of May. Official figures from the Philippine Statistics Authority (PSA) are expected on July 8.