FX.co ★ Philippines Manufacturing PMI Slips into Contraction in September, Ending Expansion Streak

The Philippines’ manufacturing sector moved into contraction territory in September 2026, as the S&P Global Manufacturing PMI fell to 49.6 from 54.9 in August 2026. A reading below 50 signals a deterioration in operating conditions, marking a notable reversal from the solid expansion seen in the previous month.

The latest data, updated on 1 October 2026, suggests a cooling in industrial momentum after August’s robust performance. The drop of more than five points on the index underlines a weakening in manufacturing activity that may reflect softer demand or adjustments in production following earlier gains.

While the details behind the decline are not provided, the shift from strong expansion to mild contraction in just one month will be closely watched by investors and policymakers as they assess the resilience of the Philippines’ manufacturing sector heading into the final quarter of 2026.