FX.co ★ Philippines Manufacturing Returns to Expansion

The S&P Global Philippines Manufacturing PMI increased to 53 in April 2025, up from 49.4 in March, indicating a renewed expansion in manufacturing conditions after a recent dip. This improvement was attributed to significant growth in both output and new orders, driven by fresh client acquisitions and heightened activity ahead of elections. Purchasing activity picked up pace, marking 17 consecutive months of growth, and inventory levels also saw an increase. However, employment levels remained constant for the second consecutive month, as firms exhibited caution in expanding their workforce. Foreign demand showed stagnation, and there was a slight decline in work backlogs, implying manageable workloads. Regarding pricing, both input costs and output charges increased modestly, though inflationary pressures remained historically low. Despite these positive developments, business confidence fell to its second-lowest recorded level, with manufacturers voicing concerns that the election-related boost may not be sustainable in the long term.