2026.04.0100:46:14UTC+00Philippine Manufacturing Growth Cools in March

The S&P Global Philippines Manufacturing PMI declined to 51.3 in March 2026 from 54.6 in February, its lowest reading in three months. The slowdown reflected softer expansions in both output and new orders, largely linked to the war in the Middle East, which also contributed to a modest drop in new export sales.

In response, firms broadly scaled back purchasing activity, and inventories of pre-production materials registered a slight decline—the first in four months. Input costs rose sharply amid higher energy prices and material shortages, driving a substantial increase in operating expenses and factory-gate prices.

Employment continued to grow for the third straight month but at the slowest pace in this sequence. At the same time, backlogs of work accumulated at the fastest rate in four months, reflecting delays in the delivery of inputs.

Despite these headwinds, business confidence strengthened, with manufacturers’ 12-month outlook improving to a four-month high. Firms expressed optimism that easing geopolitical tensions and firmer demand conditions will underpin growth over the year ahead.