By THEPHILBIZNEWS STAFF
The Philippine manufacturing sector began the second half of 2025 on a positive note, with fresh data from S&P Global Market Intelligence pointing to steady growth and improving sentiment across the industry.
According to the S&P Global Philippines Manufacturing Purchasing Managers’ Index (PMI), the sector posted a modest increase to 50.9 in July, up from 50.7 in June, marking the strongest reading since April, and extending the sector’s return to expansion.
While the increase was moderate, the PMI remaining above the critical 50.0 mark signals sustained recovery momentum and renewed resilience among local manufacturers.
Meanwhile, production volumes rose for the second month in a row, driven by a steady stream of new orders. Manufacturers also scaled up post-production inventories to anticipate stronger sales, particularly in light of upcoming U.S. tariff adjustments. Inventory levels posted their fastest growth in eight months, reflecting growing operational confidence and preparation for global demand shifts.
Rising Demand for Domestic and Abroad
Demand for Filipino-made goods continued its upward trajectory, with domestic orders increasing for a fourth straight month. Export activity also bounced back, with new export orders rising for the first time in five months, a positive signal of recovering international appetite.
Though the overall pace of new business growth eased slightly, manufacturers remained proactive, balancing expansion with caution amid global uncertainties.
One of the most encouraging developments was the softening of inflationary pressures. Input costs grew at the slowest rate in over a year, while selling prices remained stable. This cost environment has allowed businesses to remain competitive without compromising margins, which is an important cushion as firms plan for further growth.
Bullish sentiment
Optimism among Filipino manufacturers improved to a four-month high, with firms citing expectations of better market conditions, planned marketing campaigns, and esilient domestic demand. While sentiment remains below pre-pandemic highs, the steady uptick reflects a sector that is rebuilding confidence and looking ahead with renewed purpose.
The July PMI data suggests that the Philippine manufacturing sector is laying the groundwork for a gradual and sustainable recovery, supported by consistent demand, improved cost conditions, and a more optimistic business outlook.
As global and regional trade dynamics evolve, the resilience and adaptability of Filipino manufacturers position them well for growth opportunities in the months ahead.”
“While challenges remain, growing positive sentiment hints at a more hopeful outlook for the sector,” said Maryam Baluch, economist at S&P Global.
