The S&P Global Philippines Manufacturing PMI fell to 49.6 in September 2026 from 54.9 in August, indicating the first deterioration in manufacturing conditions since April. Output declined for the first time in nine months and at the steepest rate since November 2025, reflecting softer new order inflows and intensified international competition. New export orders also slipped back into contraction during the month.
In response, manufacturers reduced employment once again, while backlogs of work fell at the fastest pace since April. Firms cut input purchases for the first time since May and scaled back both pre- and post-production inventories, with the latter declining at the quickest rate in five months. Supplier delivery times lengthened markedly, representing one of the most pronounced deteriorations in nearly two years.
On the price front, output charge inflation picked up even as input cost inflation eased to a three-month low. Business confidence, meanwhile, weakened sharply from August’s 21‑month high, dropping to its lowest level since January.
