PHL Manufacturing PMI Rises, Boosting Jobs, Investment

By Francis Allan L. Angelo

The Philippines’ manufacturing sector showed signs of steady growth in June, as the country’s Purchasing Managers’ Index (PMI) climbed to 50.7, according to data released by S&P Global.

The June 2025 PMI figure, up from 50.1 in May, reflects increased production output, higher new orders, and softer inflation, leading to the fastest rate of factory hiring in seven months.

A PMI above 50 signals expansion in the manufacturing industry, positioning the Philippines as one of the few Southeast Asian economies maintaining sectoral growth.

The country outperformed the ASEAN average of 48.6 and surpassed regional peers including Malaysia (49.3), Vietnam (48.9), and Indonesia (46.9), although it trailed behind Thailand’s 51.7.

“This reflects not only the strength of our industries but also the confidence businesses have in the Philippines,” Trade Secretary and Board of Investments (BOI) Chair Cristina A. Roque said in a statement.

“Amid global challenges, our manufacturing sector continues to grow,” Roque added, emphasizing the government’s resolve to maintain a stable and growth-oriented investment climate.

The Department of Trade and Industry (DTI) and the BOI said the latest PMI performance highlights the Philippines’ strategic potential as a manufacturing hub amid shifting global supply chains.

With firms relocating production out of China, the Philippines has gained traction by offering preferential trade access through the Regional Comprehensive Economic Partnership (RCEP), EU GSP+, and the PH-Korea Free Trade Agreement.

Reforms targeting investment facilitation and market liberalization are also helping the country attract foreign capital in key sectors.

Investor interest surged in the first half of 2025, particularly in electronics, electric vehicles, renewable energy, and green manufacturing—industries where the country is aiming to become a regional leader.

The DTI stressed that the continued momentum in manufacturing aligns with the government’s goal of building a more sustainable and innovation-driven economy.