Philippine manufacturing PMI contracts in March as new orders slump

Philippine factory activity contracted in April, the first time since November, amid a sharp decline in new orders.

The S&P Global Philippines Manufacturing Purchasing Managers’ Index (PMI) slumped to 48.3 in April, a reversal from the 51.3 in March.

“The Filipino manufacturing sector started the second quarter of 2026 with a renewed worsening of operating conditions as the headline index fell below the neutral 50.0 reading for the first time in five months,” Maryam Baluch, economist at S&P Global Market Intelligence, said in a report.

A PMI reading below 50 shows a deterioration in operating conditions from the previous month, while a reading above 50 signals an improvement.

S&P Global said new orders declined rapidly, while production stalled in April. The decline in new orders was the steepest since August 2021.

“Total new sales were also weighed down by a deteriorating export market demand picture,” Ms. Baluch said.

In April, new export orders fell at a “notably accelerated and rapid pace” as the closure of trade routes resulted in a pause in shipments and led to customer hesitancy.

“However, manufacturing firms in the Philippines expect to shake off current woes, as confidence for the year ahead rose to a 17-month high,” Ms. Baluch said. — Justine Irish D. Tabile