Philippine factory activity back to contraction in September

MANILA, Philippines —Philippine factory activity slipped back into contraction territory in September as weak demand and intensifying international competition weighed on output, new orders and employment.

The latest S&P Global survey of around 400 companies showed the Philippines’ Purchasing Managers’ Index (PMI) fell to 49.6 in September from 54.9 in August, marking the first deterioration since April.

READ: Philippine factory activity rises to near 10-year high in August

This is now below the 50-point threshold that separates growth from contraction.

“Filipino manufacturers reported a notable impact from high oil prices, strong international competition and weak demand during September. Output, new orders and employment all dropped into contractionary territory,” Siân Jones, principal economist at S&P, said.

“Firms also signalled moves into retrenchment mode via a fresh decline in input buying and a running down of inventories,” Jones added.

READ: Pax Silica to boost semiconductor industry

The sector’s output saw its sharpest decline since November 2025, while new sales and export orders also fell.

This came as cost pressures picked up amid renewed tensions between the United States and Iran, which pushed global oil prices higher again. /pai