Philippine factory activity rebounds in October despite drop in new orders, output

Philippine factory activity bounced back in October, despite a drop in new orders and production, S&P Global said.

The S&P Global Philippines Manufacturing Purchasing Managers’ Index (PMI) improved to 50.1 in October, a turnaround from 49.9 in September.

A PMI reading above 50 denotes better operating conditions from the preceding month, while a reading below 50 shows a deterioration in operating conditions.

Maryam Baluch, economist at S&P Global Market Intelligence, said the Philippines PMI reading in October reveals a “mixed picture.”

“The two largest segments, new orders and output, indicated further declines. Additionally, fresh contractions were observed in new export orders and purchasing activity, highlighting underlying demand conditions,” she said.

S&P Global noted that output and new orders “have now failed to record any growth for a second consecutive month, a trend not seen in over four years.”

Despite this, Ms. Baluch said Filipino manufacturers grew more optimistic about their growth prospects for output in the coming year.

“The sector has now remained in sluggish territory for most of the second half of 2025 so far. Whether it can see a notable recovery in performance in the coming months will depend greatly on efforts to stimulate consumer demand,” she added. — Aubrey Rose A. Inosante