03.08.202600:35:58UTC+00Philippines Factory Activity Growth at 5-Month High

The S&P Global Philippines Manufacturing PMI rose to 51.8 in July 2026 from 50.9 in June, marking a third straight month of expansion and the strongest reading since February. Stronger underlying demand and newly secured projects drove the fastest increases in both new orders and output in five months, encouraging manufacturers to step up their purchasing activity.

To satisfy rising demand amid worsening supply conditions, firms drew down inventories of both raw materials and finished goods, as supplier delivery times lengthened sharply. These delays were largely attributed to supply chain disruptions stemming from the conflict in the Middle East.

Employment declined after stabilizing in June, reflecting voluntary resignations and a reluctance among firms to replace departing staff. At the same time, input costs and selling prices rose at a pace above their long-run averages, as higher costs were increasingly passed on to customers.

Despite the stronger pace of business activity, overall confidence remained historically subdued, with ongoing geopolitical tensions and persistent inflationary pressures continuing to cloud the outlook.