
The S&P Global Philippine Manufacturing Purchasing Managers’ Index (PMI) reported Monday that local factories started the year with a solid performance as manufacturing scores remained in the green territory.
The country’s manufacturing PMI in January 2025 stood at 52.3, easing from a 54.3 score in December 2024.
PMI of above 50 indicates improvement of the sector while below the neutral score reflects deterioration.
“The Filipino manufacturing sector started the year with a further and strong improvement in demand. Output grew again, albeit at a pace which notably weakened from December. If demand trends continue to improve as they have done, then employment growth could be on the cards in the months ahead,” S&P Global Market economist Maryam Baluch said.
The report noted that the strong demand last month contributed to further rise in manufacturing output.
However, competition and higher prices of raw materials tamed production activities.
On the other hand, manufacturers’ optimistic outlook made them hike pre- and post-production inventories.
“We could see 2025 shaping up to be another strong year of growth for the Philippines manufacturing sector with industrial production growth forecasted at 3.9 percent in 2025, up from 2.4 percent in 2024. In fact, the anticipation of greater demand has already prompted goods producers to increase their inventory levels,” Baluch said.
Hiring activities were also flat in the previous month.
“The election year is also likely to provide a general boost to the manufacturing sector, as highlighted by some survey respondents,” the economist added. (Kris Crismundo, PNA)