The Philippine manufacturing sector grew for a fifth straight month in August, with the S&P Global Philippines Manufacturing Purchasing Managers’ Index (PMI) staying above the neutral 50 threshold at the expansionary level of 50.8.
Although the pace of expansion eased from 50.9 in July, analysts said the steady run in expansion mode raises hopes of momentum for third-quarter growth.
The PMI, S&P Global’s composite gauge of factory operating conditions, has now stayed in expansion territory for five months, signaling a still-resilient, if subdued, recovery in output and demand.
“This headline figure indicated a further improvement in the health of the Filipino manufacturing sector, but one that was historically subdued and only marginal overall,” Maryam Baluch, economist at S&P Global Market Intelligence, said on Monday.
Baluch noted that factory output rose for a third consecutive month in August, supported by “a sustained rise in new business.”
S&P Global added that foreign demand strengthened, with export orders expanding at the fastest pace in seven months.
Firms also stepped up input purchases, marking the sharpest upturn in four months, and reported improved confidence over the year-ahead outlook for production.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., called the sector a “bright spot” for the economy, noting its relative outperformance versus some major trading partners that have seen recent contractions.
From the bank research side, Security Bank economists Angelo Taningco and Chino Genuino pointed out that the PMI has printed above 50 each month since April’s sub-50 reading.
“Domestic manufacturers have turned more optimistic over the next 12 months, and this allows us to continue to expect another above-50 print in September,” they said.
They added that the July–August PMI profile supports their 5.8 percent year-on-year GDP growth forecast for the third quarter and suggests August inflation likely accelerated, largely on weather-related food pressures.
While the breadth of indicators points to continued growth, S&P Global emphasized the expansion remains “historically subdued and only marginal” — leaving the trajectory sensitive to price pressures, weather disruptions and external demand.
