MANILA, Philippines — The Philippines’ manufacturing sector showed signs of recovery in June 2025, regaining momentum after a slowdown in May, S&P Global reported.

According to the latest Philippines Manufacturing Purchasing Managers’ Index (PMI), the country posted a score of 50.7, up from 50.1 in May. This signals a stronger, though still modest, improvement in the health of the manufacturing industry. A PMI reading above 50 indicates expansion, while a score below it signals contraction.

“This improved demand picture and renewed growth in production requirements prompted firms to increase their purchasing activity to a stronger degree,” S&P Global said. “Moreover, June data marked a return to job creation. Payroll numbers rose for the first time in four months.”

The uptick was attributed to successful customer acquisitions, improved demand trends, and effective promotional efforts, although S&P noted that the current expansion remains below the long-term survey average.

Maryam Baluch, economist at S&P Global Market Intelligence, said the first half of 2025 was “relatively subdued” for Philippine manufacturers but highlighted encouraging signs such as gains in employment.

“Expansion in orders is still moderate, partly due to supply-side challenges,” she noted. “The next couple of months will be important to gauge if the sector can return to the growth rates seen in much of last year.”

Baluch added that lower inflationary pressures and sustained demand could support better pricing power among manufacturers, but muted business confidence could limit stronger growth in the near term. (PNA)