The Philippine manufacturing sector experiences its strongest growth in over eight years

Investing.com – According to data released by S&P Global on Monday, the Philippine manufacturing sector recorded its strongest performance since November 2017 in February.

The S&P Global Philippines Manufacturing Purchasing Managers’ Index (PMI) rose from 52.9 in January to 54.6 in February. A reading above 50 indicates expansion in manufacturing activity.

Manufacturing output grew at the fastest rate since November 2018, marking the second consecutive month of growth. Companies reported that sustained new order inflows prompted them to increase production levels.

New orders in February expanded strongly, with the growth rate accelerating compared to the previous month. The index reached its highest level in over eight years. Manufacturers attributed this growth to new customer acquisitions and bulk purchasing by clients.

Export orders increased for the second consecutive month, although the expansion rate remained stable compared to January.

To support higher production demands, manufacturers increased procurement activity at the fastest pace since January 2025.

Employment in the manufacturing sector grew for the second consecutive month, although the pace of job creation remained modest. Limited hiring led to an accumulation of backlogs, the fastest in three months.

Growth in both procurement and finished goods inventories outpaced January levels. Companies indicated that expectations of demand growth in the coming months encouraged them to increase inventory levels.

Supply chain pressures intensified in February, with the average delivery time for inputs extending for the third consecutive month. The delay was the most pronounced in 14 months. Manufacturers cited increased procurement activity, adverse weather conditions, and port congestion as contributing factors.

Operating costs decreased in February, enabling manufacturers to lower their own charges. Both reductions were modest.

Business confidence regarding output over the next 12 months improved significantly from the lows recorded in January. Firms expecting output growth linked this optimism to anticipated further improvements in potential demand.

Data was collected from February 10 to 20, 2026, through survey responses from purchasing managers in a group of approximately 400 manufacturers.

Maryam Baluch, an economist at S&P Global Market Intelligence, stated that the Philippine manufacturing sector had a solid start in 2026, with February marking its strongest performance since late 2017.

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