Philippines PMI rises to 52.9 as output returns to growth

Confidence, however, dropped to the second-lowest level on record.

The Philippines manufacturing purchasing managers’ index (PMI) rose to a nine-month high of 52.9 in January 2026, from 50.2 in December 2025, as output expanded for the first time in five months, according to a report by S&P Global Market Intelligence.

Manufacturing output returned to growth alongside a faster increase in new orders, with foreign orders expanding for the first time since September, indicating a renewed lift from export demand.

Business confidence for the year ahead fell to the second-lowest level on record, weaker only than March 2020, reflecting concerns over export demand and the sustainability of the latest improvement.

Employment also returned to growth after two consecutive months of decline, marking the fastest pace of job creation since June and enabling firms to reduce backlogs of work for the first time in three months.

Purchasing activity rose at the fastest pace in 12 months as production requirements increased, whilst input inventories expanded for the first time in three months.

Input costs rose further due to higher raw material prices, but inflation remained subdued and below long-run averages, with output prices increasing only slightly, S&P Global said.

“Despite these encouraging developments, January data pointed to a worrying decline in business confidence,” said Maryam Baluch, economist at S&P Global Market Intelligence, citing lingering concerns over export demand and the durability of the recovery.