FX.co ★ Philippines Factory Activity Contracts for 2nd Month

The S&P Global Philippines Manufacturing PMI slipped to 49.1 in October 2026 from 49.6 in September, signaling a second consecutive month of contraction as both output and new orders continued to decline. Although the pace of output reduction slowed, the drop in new orders intensified, with firms attributing weaker demand to subdued market conditions and unusually hot weather, which some associated with El Niño. New export orders also fell, albeit modestly.

Manufacturers scaled back purchasing activity further, with the decline reaching its sharpest pace in 11 months, while employment contracted for the second month in a row. Supplier delivery times lengthened for the 11th consecutive month. Pre-production inventories were broadly unchanged, but stocks of finished goods edged up for the first time in four months.

Despite the muted operating environment, business confidence improved, climbing to its highest level in nearly two years. At the same time, price pressures softened, as input costs registered their slowest rate of increase in eight months.