Philippine manufacturing shrinks for second month in October
The manufacturing PMI slipped to 49.1 from 49.6 in September, while business confidence reached a two-year high.
Manufacturing in the Philippines recorded another contraction in October, with weaker demand weighing on production and orders, according to S&P Global's latest survey. Its manufacturing purchasing managers' index fell to 49.1, marking the second consecutive monthly contraction.
The reading was down from September's 49.6 and remained below 50.0, the dividing line between growth and contraction. October was the third month this year in which the sector contracted.
Production declined less sharply than new orders. Manufacturers cited subdued demand and hot conditions associated with El Niño. Overseas demand also weakened, with export orders registering a modest decline, while purchasing activity recorded its steepest fall in 11 months.
Stocks held before production were unchanged, but finished-goods inventories edged higher for the first time in four months. S&P Global Market Intelligence principal economist Siân Jones said confidence had climbed to a two-year high as manufacturers expected new customers and projects to lift production over the coming year.
Jones cautioned that greater optimism had not yet produced a recovery in orders or recruitment. The survey draws responses from around 400 manufacturers. The Philippine Statistics Authority is scheduled to publish government figures for October 2026 on December 4, 2026.
