FX.co ★ Philippines Manufacturing Expansion Slows in May

The S&P Global Philippines Manufacturing PMI declined to 50.1 in May 2025, down from the four-month high of 53 recorded in April. This deceleration was mainly due to a fresh drop in production, marking the second reduction in output within a three-month period, as businesses reported weaker demand conditions. Additionally, the manufacturing sector saw a renewed decrease in employment—the first drop in four months and the most significant in nearly a year. This reduction was largely due to voluntary resignations and a decision by companies not to fill vacant positions. Regarding pricing, inflationary pressures remained relatively low historically, although slight intensification was observed. Both input costs and output charges reached their highest levels since January, though the overall inflation rate stayed moderate. Looking ahead, firms maintained an optimistic outlook on production, driven by anticipated increases in new orders.