Philippine manufacturing PMI contracts in April as orders and exports weaken

Manufacturing PMI fell below 50 for the first time in five months.

The Philippines’ Manufacturing Purchasing Managers’ Index slumped to 48.3 in April from 51.3 in March, driven by weaker new orders and export demand.

S&P Global said in a report that new orders declined sharply, marking the first fall in five months and the steepest drop since August 2021.

Export orders also fell at the fastest pace since mid-2020, with firms reporting halted shipments linked to disrupted trade routes.

Production stalled after growth in the first quarter of 2026. The output index recorded 50.0, indicating no change in operating levels.

Manufacturers reduced purchasing activity and drew down inventories as input and shipping costs increased.

Input price inflation accelerated to its fastest pace since December 2022, driven by higher energy and shipping costs linked to conflict in the Middle East.

Factory gate prices rose at the fastest rate in 41 months, the report noted.

Employment fell for the first time in 2026 so far, as firms reduced staffing levels in response to weaker demand and higher costs, whilst backlogs of work declined as lower new orders reduced capacity pressures.

Supplier delivery times lengthened further, with firms attributing delays to supply chain disruption linked to the Middle East conflict.

Business confidence rose to a 17-month high, supported by expectations of stronger demand and a larger client base over the year ahead.