MANILA: The Philippine manufacturing sector experienced significant growth in 2024, driven by increased output and new orders, according to a report by SandP Global released on Thursday. The country's manufacturing Purchasing Managers' Index (PMI) rose to 54.3 in December, up from 53.8 in November, marking the joint-strongest performance since November 2017, alongside that seen in April 2022.
According to Philippines News Agency, SandP Global attributed the strong growth to robust underlying demand trends, product diversification, and the acquisition of new clients. The report highlighted that both output and new orders rose sharply and at broadly similar rates, representing the most substantial growth since April 2022. Demand from international markets also showed an uptick, marking the first increase in new export orders in five months.
"Firms also expanded their purchasing activity to meet production requirements," said Maryam Baluch, an economist at SandP Global Market Intelligence. December saw a moderation in inflationary pressures, a shift from the spike observed in November, with cost burdens and output charges rising at historically muted rates.
Despite the positive trends, Baluch noted a slight drop in employment, attributing it to enhanced production efficiency. "However, this could be a temporary blip, especially if demand remains resilient as anticipated throughout 2025," she said. Looking ahead, firms expressed confidence that output would continue to rise, buoyed by expectations of strengthening demand trends and plans to launch new products.
