The operating conditions of the Philippines’ manufacturing sector at the start of the year slowed down amid weaker upturns in output and new orders.
The headline S&P Global Philippines manufacturing purchasing managers’ index, a composite single-figure indicator of manufacturing performance, ticked down for the second month running to 50.9 in January from 51.5 in December.
The latest report said a cooling demand environment, especially from international markets, led to factory orders rising only fractionally in January, and at the weakest pace in the current five-month sequence of growth.
In line with softer demand conditions, the S&P Global report said manufacturing companies in the Philippines raised their production levels at a historically subdued rate.
After easing for the second successive month, the pace of growth was the weakest since August 2023.
“The turn of the year revealed a slight weakness in demand conditions, as new orders and output growth eased. Moreover, looking forward, global headwinds and sluggish demand from external markets, especially China, are likely to weigh on the Filipino manufacturing sector,” Maryam Baluch, economist at S&P Global Market Intelligence, said.
“On the flipside, other evidence from latest PMI data, such as the rise in buying activity and the building of stocks, indicates that manufacturers anticipate continued growth in the coming months. Additionally, historically subdued inflationary pressures will also assist the sector, as firms seek to price competitively,” Baluch added.
The report said firms remained positive overall in their outlook, despite confidence easing to a three-month low and registering below the long-run average.
