FX.co ★ Philippine Manufacturing Activity Returns to Growth

The S&P Global Philippines Manufacturing PMI climbed to 50.8 in May 2026 from 48.3 in April, indicating a renewed improvement in overall manufacturing conditions. New orders rebounded following a sharp contraction in April, supported by stronger client demand and new customer acquisitions, which in turn prompted firms to step up production at a solid pace.

Export demand, however, remained weak, with new orders from abroad declining at the fastest rate since July 2020. Supplier delivery times lengthened to one of the greatest extents in nearly eighteen months, reflecting shipping delays and firms’ efforts to consolidate orders in order to contain costs.

Input cost inflation accelerated to its highest level since August 2022, even as selling prices increased at a more moderate rate. Purchasing activity declined for a third consecutive month, and inventories of inputs fell at the steepest pace in six years. Employment also shrank, with firms cutting staff at the fastest rate in two years.

Despite these headwinds, business sentiment strengthened, with confidence rising to an eighteen‑month high on expectations that demand conditions will improve.