Manufacturing index holds steady in August

Philippines’ August 2025 Manufacturing Purchasing Managers’ Index (PMI) remains on expansion at 50.8 points, data released by S&P Global showed Monday in a report by Philippine News Agency.

Although the latest figure is lower than the previous month’s 50.9 points, S&P Global, in a report, said this is “in line with rising production requirements.”

An index of 50 and above indicates expansion, while figures lower than this show otherwise.

“The headline figure indicated a further improvement in health of the Filipino manufacturing sector, but one that was historically subdued and only marginal overall,” the report said.

The report traced the sector’s output to an increase in news business, which, it noted was “broadly in line with that observed in July, with anecdotal evidence pointing to new customer acquisitions and improved underlying demand trends.”

It said demand from overseas posted its fastest in the last seven months, but employment was flat, resulting in a build-up of backlogs of work.

“In an effort to fulfill new orders, manufacturers tapped into their post-production inventories, leading to a renewed and modest decline in stocks of finished goods in August. Reductions have now been noted in three of the last four survey periods, with some firms reporting that they released stock onto the market to mitigate potential damage at warehouses from heavy rainfall,” it said.

Maryam Baluch, economist at S&P Global Market Intelligence, said the latest PMI figures are “below their historical averages.”

"However, subdued cost pressures, coupled with manufacturers' efforts to control their pricing in a bid to remain competitive, could provide the boost firms need to regain sales momentum,” she said.