The Market Monitor Minding the Nation's Business
The Philippine manufacturing sector closed 2024 on a strong note, fueled by robust growth in output and new orders, according to a report by S&P Global on Thursday.
The country’s manufacturing Purchasing Managers’ Index (PMI) climbed to 54.3 in December, up from 53.8 in November, matching the highest level since November 2017, alongside the PMI recorded in April 2022.
“The Filipino manufacturing sector ended 2024 on a positive note, with further improvements in demand resulting in sharp and significant increases in new orders and output,” stated Maryam Baluch, an economist at S&P Global Market Intelligence.
The PMI, which gauges manufacturing performance, indicated significant growth in both output and new orders, reaching their strongest levels since April 2022. This growth was attributed to strong underlying demand, product diversification, and the acquisition of new clients.
International demand also contributed to the sector’s performance, with export orders rising for the first time in five months.
“Firms also expanded their purchasing activity to meet production requirements. December highlighted a moderation in inflationary pressures, marking a shift from the spike observed in November. In fact, cost burdens and output charges rose at historically muted rates,” Baluch added.
Despite these gains, Baluch noted a slight decline in employment due to production efficiency. However, she described this as a potentially short-term issue, particularly if demand continues to grow as expected in 2025.
Looking ahead, manufacturers expressed optimism about increased output in the coming year, driven by expectations of stronger demand and plans to launch new products.