Philippines Manufacturing PMI Hits 8-Year High

The Philippines' manufacturing sector recorded its strongest performance since November 2017 in February 2026, with the S&P Global Philippines Manufacturing Purchasing Managers' Index (PMI) rising to 54.6 from 52.9 in January. This expansion, marking three consecutive months of growth, was driven by a sharp influx of new orders, leading to the fastest increase in manufacturing output since November 2018. Manufacturers increased purchasing activity and built up inventories in anticipation of sustained demand. Employment also rose for a second consecutive month, though modestly, resulting in a build-up of work backlogs. Despite intensifying supply chain pressures due to poor weather and port congestion, operating expenses fell marginally, allowing manufacturers to reduce selling prices. Business confidence for the 12-month outlook improved significantly, rebounding from a low in January, with firms optimistic about continued demand improvements. Economists like Maryam Baluch of S&P Global Market Intelligence and John Paolo Rivera of the Philippine Institute for Development Studies highlighted the robust domestic and foreign demand, but also noted potential risks from global developments such as US President Donald Trump's tariff measures and the US-Israel conflict with Iran.