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Operating conditions of the Philippine manufacturing sector was broadly stable in October 2025 despite new orders and output indicating further declines, according to the latest survey of S&P Global
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Headline purchasing managers’ index registered at 50.1 in October 2025, up fractionally from 49.9 in the month prior
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The above 50.0 PMI reading masked slight falls in both output and new orders, which have now failed to record growth for a second consecutive month, a trend not seen in over four years
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Despite firms cutting back on their buying activity, delivery times for inputs continued to lengthen in October, and to the strongest degree in three months
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Filipino manufactures looked more favorably on the prospect of output levels rising over the coming 12 months
Operating conditions of the Philippine manufacturing sector was broadly stable in October 2025 despite new orders and output indicating further declines.
The manufacturing sector’s headline purchasing managers’ index (PMI) – a composite single-figure indicator of manufacturing performance – registered at 50.1 in October 2025, up fractionally from 49.9 in the month prior, and signaled broadly stable operating conditions across the Filipino manufacturing sector, according to the latest survey of S&P Global.
The above 50.0 PMI reading masked slight falls in both output and new orders. Both trackers have now failed to record any growth for a second consecutive month, a trend not seen in over four years, S&P Global noted.
“A closer examination of the Philippines PMI data revealed a mixed picture in October. The two largest segments, new orders and output, indicated further declines. Additionally, fresh contractions were observed in new export orders and purchasing activity, highlighting underlying demand conditions,” S&P Market Intelligence economist Maryam Baluch said.
The recent decline in output was closely associated with falling new orders, which S&P Global survey panelists linked to adverse weather conditions and the end-of-life status for certain products.
Nevertheless, the rate of contraction in production slowed on the month, and was only marginal.
New factory orders placed with manufacturing firms in the Philippines, meanwhile, fell at a stronger rate in October. Surveyed panelists often linked this decline to a sluggish demand climate, with clients often putting orders on hold.
In addition, new export orders fell for the first time since May and at a solid pace which was the most pronounced for a year. Companies reported weaker demand from international clients.
The sharper decline in new factory orders led to a renewed decrease in purchasing activity, thereby concluding a 22-month period of growth. However, according to anecdotal evidence, last-minute cancellations of orders meant that both pre- and post-production inventories recorded marginal increases. The latter registered a fresh uptick, marking the first expansion in three months.
Despite firms cutting back on their buying activity, delivery times for inputs continued to lengthen in October, and to the strongest degree in three months.
Turning to prices, October marked a further alleviation of underlying cost pressures. The rate of input price inflation was modest and the weakest in three months.
However, where goods producers reported higher prices, this was attributed to rising supplier and material costs. Relatively subdued cost pressures and a weak demand environment led Filipino manufacturers to offer discounts.
Charges levied for Filipino manufactured goods fell for the first time in 19 months. The rate of decrease was marginal but the strongest since April 2020.
Despite a sustained fall in new orders, Filipino manufactures looked more favorably on the prospect of output levels rising over the coming 12 months.
Positive sentiment was close to the recent high observed back in August. Survey panelists were hopeful that production will bounce back, supported by strengthening demand trends.
Additionally, workforce numbers were raised further in October. Although signaling a slight uptick, the pace of job creation was the strongest in three months as firms reported successful recruitment efforts. Falling new orders and rising workforce numbers meant that Filipino goods producers were able to reduce their backlogs of work for a second straight month in October.
READ: PH manufacturing drops in September 2025 with lower output, new orders
