Philippine Manufacturing Starts 2025 Strong, PMI Stays in Growth Zone

In January 2025, the PMI was 52.3, slightly lower than December 2024’s 54.3. A PMI above 50 signals growth, while a score below 50 indicates a decline.

S&P Global Market economist Maryam Baluch said manufacturing demand continued to improve, though production growth slowed compared to December. If demand keeps rising, employment may also increase in the coming months.

The report highlighted that strong demand boosted manufacturing output. However, competition and rising raw material costs limited production growth.

Despite these challenges, manufacturers remained optimistic and increased their inventories before and after production.

“We expect 2025 to be a strong year for the Philippine manufacturing sector, with industrial production projected to grow by 3.9%, up from 2.4% in 2024. In fact, the anticipation of higher demand has already led producers to stock up on goods,” Baluch said.

Hiring remained steady last month, but survey respondents noted that the upcoming election year could further support manufacturing growth.

Source:
PH factories kick off 2025 with solid performance | Philippine News Agency. (2025). Pna.gov.ph. https://www.pna.gov.ph/articles/1243200

For academic purposes only. Created as a requirement for Work Immersion