Factory activity returns to growth in October

Despite weather disturbances, the Philippines' manufacturing sector returned to growth in October, with the purchasing managers' index (PMI) climbing back above the 50 mark after September's slowdown.

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However, October's PMI remained among the weakest readings in seven months, or since March 2025, and one of the lowest in over two years, or since August 2023.

S&P Global Market Intelligence's Philippines manufacturing PMI for October 2025, released on Monday, Nov. 3, posted an expansion of 50.1 in October after the contraction in September of 49.9. A score below 50 signals contraction, while a reading above 50 indicates expansion.

The report noted that growth in October signaled broadly stable operating conditions across the Filipino manufacturing sector.

S&P Global, however, reported that, "A further and stronger fall in new orders was recorded. This was accompanied by a solid and fresh reduction in new export orders. In turn, production remained in contraction territory. Indeed, reduced output requirements prompted firms to scale back their purchasing activity for the first time in nearly two years."

Despite a sustained fall in new orders, S&P Global noted that "Filipino manufacturers looked more favorably on the prospect of product levels rising over the coming 12 months."