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Manufacturing in the Philippines turned down sharply in November 2025, signaling its strongest deterioration in operating conditions since August 2021
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The manufacturing sector’s headline PMI registered at 47.4 in November 2025, down notably from 50.1 in October
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Output and new orders contracted at their fastest rates since August 2021, driven by weak customer demand
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Exports, purchasing and employment also declined, reflecting broader challenges in the sector
Manufacturing in the Philippines turned down sharply in November 2025, signaling its strongest deterioration in operating conditions since August 2021, according to the latest S&P Global survey data.
The manufacturing sector’s headline purchasing managers’ index (PMI) – a composite single-figure indicator of manufacturing performance – registered at 47.4 in November 2025, down notably from 50.1 in October.
A reading above 50 indicates an overall increase compared to the previous month, and below 50 an overall decrease.
The drop reflected in all five components, with new orders and output having the greatest negative influences.
“Output and new orders contracted at their fastest rates since August 2021, driven by weak customer demand. Exports, purchasing and employment also declined, reflecting broader challenges in the sector,” S&P Global Market Intelligence economics director Trevor Balchin said in a statement.
New orders placed with manufacturing firms in the Philippines fell for the third month running, and at the fastest rate since August 2021. Lower orders were attributed to weak customer demand and reduced requirements due to product life cycle changes.
New export orders also fell for the second month running and to the greatest extent since September 2024.
Production followed the same trend as new orders in November, falling for the third month running and at the fastest rate since August 2021. Many businesses also noted that the typhoon had caused disruptions to business activities.
Reduced new orders influenced demand for inputs in November. Purchasing activity fell for the second month running, the first back-to-back decline in over four years. The rate of reduction was the fastest since August 2021, and led to the first depletion of input stocks in five months. Moreover, the rate of destocking was the fastest in just over five years.
Suppliers’ delivery times, meanwhile, were shortened for the first time since April 2024, albeit only slightly.
With new orders falling solidly, manufacturers shed staff in November for the first time since May. The overall rate of job shedding was only marginal, but the fall was linked to layoffs and the non-renewal of contracts.
Backlogs rose for the first time in three months, and stocks of finished goods were depleted at the fastest rate in nearly a year.
Despite a sustained fall in new orders, manufacturers in the Philippines were increasingly confident of growth of output over the next 12 months. Overall sentiment was strongest since November 2024.
READ: PH manufacturing steady in Oct 2025, producers keep positive outlook
Firms expect higher future output mainly due to anticipated new projects, increased orders, economic development, new customers and aggressive marketing.
Recovery hopes and business expansion plans also supported optimism towards future performance.
Inflationary pressures remained relatively muted in November. Lower demand for raw materials contributed to the slowest pace of input cost inflation at Filipino manufacturers in four months, and a rate that remained well below the long-run trend. Output prices rose, having fallen in October, but the rate of inflation was only slight overall.
