Philippines Manufacturing Sector Expands for Third Straight Month

The Philippines manufacturing sector expanded for the third consecutive month in July, according to the latest S&P Global Philippines Manufacturing Purchasing Managers’ Index (PMI). The index rose to 51.8, up from 50.9 in June, reflecting an increase in manufacturing output, new orders, and purchasing activity fueled by stronger client demand.

S&P Global noted that while the growth indicates a modest improvement in sector health, it represents a welcome shift from the subdued performance recorded between March and June. Despite the upward trend in activity, manufacturers faced renewed inflationary pressures and rising input costs.

S&P Global attributed the spike in costs to the ongoing war in the Middle East. To manage these expenses, firms have begun passing the higher costs on to customers through increased charges for goods.