Stronger demand and new project wins lifted orders and output, while supply chain disruptions tied to Middle East conflict strained deliveries and kept confidence subdued.
The S&P Global Philippines Manufacturing PMI rose to 51.8 in July 2026 from 50.9 in June, marking a third straight month of expansion and the strongest reading since February. Stronger underlying demand and new project wins drove the fastest growth in new orders and output in five months, leading manufacturers to step up purchasing. Firms also drew down raw material and finished goods inventories to meet rising demand, even as supplier delivery times worsened sharply, largely because of supply chain disruptions linked to the Middle East conflict. Employment fell after stabilizing in June, with companies citing voluntary resignations and reluctance to replace departing staff. Input costs and selling prices rose at a faster pace, both moving above their long-run averages as higher costs were passed on to customers. Despite the improved activity backdrop, business confidence stayed historically subdued amid ongoing geopolitical uncertainty and inflationary pressures.