FX.co ★ Philippines Manufacturing PMI Returns to Expansion

The S&P Global Philippines Manufacturing PMI increased to 50.2 in December 2025, up from 47.4 in November, surpassing the neutral 50 mark once again. This moderate improvement in manufacturing conditions was primarily driven by a renewed rise in new orders for the first time in four months, prompting firms to resume their purchasing activities. Although output remained in a declining trend, the rate of this decline slowed, and employment conditions showed signs of stabilization, with a reduction in the pace of job losses compared to the previous month. Regarding pricing, although input cost inflation eased to its lowest point in 19 months, firms slightly quickened their output price hikes by transferring higher material costs to consumers. Looking forward, manufacturers expressed optimism about output growth for the coming year. This positive outlook is bolstered by expectations of new projects, product launches, business expansion plans, and stronger domestic demand. However, overall sentiment did see a slight decline from November's recent 12-month peak.