Manila: Producer Price Index (PPI) for Manufacturing expanded by 0.3 percent to 98.8 points in October 2025, driven by the manufacturing of a cola brand and refined petroleum products, among others. Other factors that backed the sector are manufacturing of transport equipment and basic metals, data released by the Philippine Statistics Authority (PSA) on Tuesday showed.
According to Philippines News Agency, the growth of the Manufacturing PPI is slower than the 0.8 percent jump in the previous month due to lower output of computer and electronic and optical products, which accounted for around 56 percent of the slower annual growth for PPI.
Amidst the slower expansion, Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort, in a reply to questions from PNA, expressed optimism for a better output in the coming months given the seasonal uptick in demand during the holidays and manageable inflation rate, with the latter seen to provide leeway for a cut in the Bangko Sentral ng Pilipinas' (BSP) key rates.
Relatively, the country's S and P Global Manufacturing Purchasing Managers Index (PMI) for November declined to 47.7 points, which Ricafort traced partly to impact of weather-related disturbances, the tailend of the manufacturing season ahead of the surge in demand in the fourth quarter, impact of higher US tariff, and investors' concerns as a result of the ongoing investigation on anomalous flood control projects.
Ricafort said these factors are seen to be countered by the possible further reduction in key rates of both the BSP and the US Federal Reserve since this will result in lower borrowing costs.
Relatively, Federation of Philippine Industries (FPI) chairperson Beth Lee, in a statement, attributed the decline in the Manufacturing PMI to 'weaker demand, export order decline, and weather-related disruptions.'
Lee also noted that corruption controversies are not unique to the Philippines, citing its hit on investors' trust, but noted that reforms are now being put in place, such as discipline and transparency across agencies, suspension of abusive audit practices to restore fairness and predictability; and digitalization and risk-based inspections to close loopholes and combat smuggling.
'The government's decisive campaign against corruption is the tough but necessary remedy, and with proper reforms and the strict implementation of it, we are confident it will deliver lasting benefits-restoring fairness for businesses and rebuilding trust among consumers,' she said.
