The Federation of Philippine Industries (FPI) is banking on reforms that would be pursued by the Marcos Jr. administration, as well as stabilized local demand for the country’s manufacturing sector to remain resilient and formidable.

The group, headed by its chairperson, Beth Lee, is reacting to the latest Purchasing Manager’s Index (PMI) recently released by S&P Global, which climbed to 50.2 in December 2025 from November’s four-year low of 47.4.

This rebound signals a modest return to expansionary territory and marks a 2.8-point increase, equivalent to a 5.9 percent jump from the previous month.

According to Lee, holiday seasonality was not the main factor since the PMI is seasonally adjusted.

Genuine stabilization rather than Christmas restocking

The December rebound reflects genuine stabilization rather than Christmas restocking, and December’s rebound shows that the majority of manufacturers saw stabilization after November’s sharp contraction.

“The PMI shows we are back in positive territory — a clear sign of resilience. The challenge and opportunity now are to turn this recovery into lasting industrial strength by investing in innovation, diversification and resilience,” she said.

According to the FPI chair, the improvement was driven by several factors, including the normalization of manufacturing operations after typhoon disruptions in November, which had severely hampered production and deliveries.

She said new orders grew for the first time since August, ending a three-month contraction and signaling firmer domestic demand.