Domestic factories bounced back in April 2025 following dismal operating conditions in March, as both output and new orders reported fresh, sharp increases, according to the latest Purchasing Managers’ Index (PMI) of S&P Global Market Intelligence.

“The Filipino manufacturing sector commenced the second quarter of the year on a solid note, experiencing renewed growth in output and new orders, alongside an increased level of purchasing activity. Encouragingly, inflationary pressures also remained contained and historically subdued,” said Maryam Baluch, economist at S&P Global Market Intelligence.

The headline S&P Global Philippines Manufacturing PMI posted 53.0 in April, signalling a renewed improvement in the health of the Filipino manufacturing sector. This was up from March’s reading of 49.4, which was the lowest for 43 months and indicated a modest deterioration in operating conditions.

Fresh upturn

The fresh upturn last month was supported by renewed expansions in new orders and output, driven by new client acquisitions and the upcoming election. Rates of growth were sharp and the most pronounced in the year-to-date for both indicators.

Meanwhile, international demand for goods produced by the Philippines manufacturing sector remained broadly stagnant for a second consecutive month in April.

Manufacturers accelerated their buying activity in April to meet higher output needs. Growth has now been recorded in each of the last 17 months, with the latest uptick solid overall.

Additionally, producers increased their purchasing activity, including instances of bulk buying, to build their inventories of inputs. Holdings of finished goods also rose in April but the increase was only fractional.

Employment levels remained unchanged for a second straight month during April as firms managed their workloads effectively.

Modest inflationary pressures

Meanwhile, inflationary pressures were only modest. Cost burdens and output charges continued to rise, but at historically subdued paces, with the latter registering only a slight increase as a competitive environment led some firms to absorb their costs.

However, the report found that while firms remained hopeful that output will rise over the coming 12 months, confidence declined as goods producers indicated a notably less optimistic outlook compared to the previous month.

“The degree of confidence was the second-lowest in the series history, which dates back to January 2016, only surpassing that observed in March 2020,”the report said.