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The Philippine manufacturing sector rose to 54.6 in February, marking its strongest performance since November 2017 with accelerated increases in production volumes and new orders
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The manufacturing sector’s headline purchasing managers’ index rose from 52.9 in January
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Sustained growth in new orders led manufacturers to increase their production levels and higher input buying
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Increased purchasing activity, along with poor weather conditions and congestion issues at ports meant that supply chains came under further duress in February
The Philippine manufacturing sector saw improved operating conditions in February 2026, marking its strongest performance since November 2017 with accelerated increases in production volumes and new orders.
The manufacturing sector’s headline purchasing managers’ index (PMI) – a composite single-figure indicator of manufacturing performance – rose to 54.6 in February from 52.9 in January 2026, according to the latest survey data from S&P Global.
“The Philippines manufacturing sector has had a solid start to 2026, with February marking its strongest performance since late 2017,” S&P Global Market Intelligence economist Maryam Baluch said in a statement.
“A sharp influx of new orders underpinned robust growth of output, and in both cases, the expansions were historically pronounced and reached multi-year highs,” Baluch added.
READ: PH manufacturing starts strong at 9-month high in Jan
S&P Global said manufacturing companies in the Philippines noted that sustained growth in new orders led them to increase their production levels. Output increased for a second month running, with the latest uptick in fact the fastest since November 2018.
Similar to production, the latest rise in order book volumes across the Filipino manufacturing sector was strong, with the pace of increase accelerating on the month. The respective seasonally adjusted index hit the highest level in just over eight years, S&P Global said, noting that the acquisition of new clients and bulk buying activity among customers was said to have pushed up new sales.
The latest data also hinted that growth in new factory orders was driven by improvements in domestic and international demand, as the rise in new export orders remained modest.
Foreign sales increased for the second consecutive month, though the pace of expansion held steady in February.
Increased production meant that input buying rose at an accelerated rate in February, with the pace of expansion strong and the fastest since January 2025.
Firms, in turn, stepped up their stock building initiatives, S&P Global noted. The rates at which inventories of purchases and finished goods were accumulated were stronger than seen in the month prior.
Firms also often noted that expectations of increased demand in the coming months encouraged companies to raise their stock levels.
Employment growth across the Philippines manufacturing sector was sustained in February, with staffing numbers rising for a second straight month. The pace of job creation was only modest overall and therefore insufficient to prevent a fresh build-up in backlogs of work. The pace of accumulation was the fastest in three months.
Increased purchasing activity, along with poor weather conditions and congestion issues at ports meant that supply chains came under further duress in February. Average delivery times for inputs lengthened for a third successive month. The incidence of delay was sharp overall and the most pronounced in 14 months.
Turning to prices, Filipino manufacturers reported falling operating expenses, which in turn allowed them to reduce their own charges. In both cases, the rates of decrease were fractional overall.
Sentiment regarding the 12-month outlook for output improved in February. The degree of confidence lifted notably from the recent low observed at the turn of the year. S&P Global’s survey panelists that foresee growth in production volumes largely linked this to hopes of further improvements in underlying demand trends.
