PH manufacturing activity strengthens in June: S&P Global

The Philippine manufacturing sector posted a modest recovery in June 2025, according to the latest S&P Global Philippines Manufacturing Purchasing Managers’ Index (PMI) released Tuesday.

The PMI rose to 50.7, up from 50.1 in May, reflecting a slight but stronger improvement in business conditions. A reading above 50 indicates expansion, while below 50 signals contraction.

S&P Global reported that the upturn was driven by a rise in new business and improved production requirements. These developments prompted firms to increase purchasing activity and hire more staff—marking the first increase in employment in four months.

“This improved demand picture and renewed growth in production requirements prompted firms to increase their purchasing activity to a stronger degree,” the report stated. “Moreover, June data marked a return to job creation.”

The research firm noted that recent gains were attributed to better customer acquisition, improved demand, and effective marketing initiatives. However, it cautioned that the overall pace of growth remains moderate and below the long-run survey average.

S&P Global Market Intelligence economist Maryam Baluch said that while first-half manufacturing activity remained relatively subdued, positive signs such as employment gains point to areas of strength.

“The next couple of months will be important to gauge if the sector is able to return to the stronger growth rates seen in much of last year,” she noted. “Lower inflationary pressures and sustained demand could support improved pricing power for manufacturers.”

The Marcos administration continues to promote the Philippines as a hub for sustainable and smart manufacturing, seeking to attract foreign investment that could help sustain and expand gains in the industrial sector.