Manufacturing PMI falls to 4-year low

PHILIPPINE FACTORY ACTIVITY fell sharply in November — the steepest drop in over four years — as output and new orders declined amid weather disruptions.

- By Aubrey Rose A. Inosante Reporter

S&P Global Philippines Manufacturing Purchasing Managers' Index (PMI) slumped to 47.4 in November, a reversal from the 50.1 in October.

In a report, S&P Global said this signaled the "strongest deterioration" in operating conditions in the Philippine manufacturing sector since the 46.4 reading in August 2021.

"Output and new orders contracted at their fastest rates since August 2021, driven by weak customer demand. Exports, purchasing and employment also declined, reflecting broader challenges in the sector," Trevor Balchin, economics director at S&P Global Market Intelligence, said.

The headline PMI is a composite indicator of manufacturing performance.

A PMI reading below 50 indicates an overall deterioration in operating conditions compared to the previous month, while a reading above 50 indicates better operating conditions.

The Philippines was the only country in the Association of Southeast Asian Nations (ASEAN) that saw a deterioration in manufacturing activity in November. ASEAN PMI rose to 53 in November from 52.7 in October, as new orders and production further accelerated.

Based on S&P ASEAN PMI data, Thailand recorded the highest PMI reading at 56.8, followed by Vietnam (53.8), Indonesia (53.3), Myanmar (51.4), and Malaysia (50.1).

In August, the US began imposing a 19% reciprocal tariff on many goods from the Philippines, Cambodia, Malaysia, Thailand and Indonesia.

S&P Global said Philippine manufacturers saw new orders drop for a third straight month, and at the fastest rate since August 2021. This was attributed to “weak customer demand and reduced requirements due to product life cycle changes.”

It noted new export orders fell for the second straight month, and at steepest pace since September 2024.