Manila: The country's Manufacturing Purchasing Managers' Index (PMI) posted a rebound in December 2025 to 50.2 from the previous month's 47.4 level, which an industry official said is a sign of stabilization, not seasonality. An index of above 50 indicates expansion, while those below 50 shows otherwise.
According to Philippines News Agency, Federation of Philippine Industries (FPI) Chairperson Beth Lee stated that the 5.9 percent jump of the manufacturing PMI reflects genuine stabilization rather than Christmas restocking. She emphasized that the PMI shows the sector is back in positive territory, indicating resilience. Lee highlighted the importance of turning this recovery into lasting industrial strength by investing in innovation, diversification, and resilience.
Lee identified primary factors for the improvement, including normalization of factories' operations following several typhoons in November, an improvement in orders after a slowdown since August, and a resumption of purchasing activity amidst supply chain challenges. She noted that the rebound was domestically led, as export orders remained subdued at the close of 2025.
Looking ahead, Lee suggested that export growth in 2026 could provide a stronger external tailwind, especially in electronics, which account for nearly half of Philippine exports. If this export momentum is realized, it will help sustain PMI readings above 50, signaling broader expansion in the manufacturing sector.
Catalysts for the year include domestic resilience against natural calamities and supply chain shocks, diversification from the current dual structure of food processing and electronics, and strengthening mid-complexity industries like machinery, chemicals, and wood products to reduce volatility and broaden employment opportunities.
Lee mentioned that the manufacturing sector accounts for around 15.7 percent of the domestic economy's annual output, which is below the regional level of between 22 percent and 27 percent. This situation highlights the urgency of Tatak Pinoy reforms to diversify and deepen industrial capacity, ensuring manufacturing becomes a stronger engine of national growth.
Lee concluded that December's rebound is not just a number but a signal that Philippine manufacturing can recover quickly when demand stabilizes. She expressed optimism for 2026, banking on the expansion and implementation of real reforms that affect businesses, along with the strengthening of initiatives like Tatak Pinoy to build long-term resilience for the country's manufacturing base.
