The Philippines’ manufacturing sector showed signs of renewed strength in June 2025, bouncing back from a slight dip the previous month. According to S&P Global, the country’s Manufacturing Purchasing Managers’ Index (PMI) rose to 50.7 from 50.1 in May—still a modest gain, but a step in the right direction.
A PMI above 50 signals expansion, while anything below indicates contraction. This uptick, though slight, points to improving conditions in the country’s production sector.
“This improved demand picture and renewed growth in production requirements prompted firms to increase their purchasing activity to a stronger degree,” the report noted. Most notably, June marked the first month of job creation in four months, with companies beginning to hire again as demand picked up.
S&P Global also highlighted that while June’s growth remained under the long-term survey average, it was buoyed by new customer wins, stronger underlying demand, and effective marketing strategies. These factors helped businesses recover from recent sluggishness and raised hopes of sustained improvement.
Maryam Baluch, an economist at S&P Global Market Intelligence, pointed out that while manufacturing performance during the first half of the year was relatively subdued, the PMI figures “masked some pockets of strength,” particularly in employment.
She added that moderate growth in new orders is being held back by supply-side issues, but there’s cautious optimism. “Lower inflationary pressures and sustained demand will, in part, help Filipino manufacturers regain pricing power,” she said. “Still, historically low business confidence may signal a more tempered growth path for the rest of the year.”
The Marcos administration continues to push for more foreign investment, promoting the Philippines as a strategic hub for smart and sustainable manufacturing. With global companies eyeing Southeast Asia, officials hope these improving indicators will further boost investor confidence and drive long-term industrial growth.