Manila: Philippines’ August 2025 Manufacturing Purchasing Managers’ Index (PMI) remains on expansion at 50.8 points, data released by S and P Global showed Monday.

According to Philippines News Agency, although the latest figure is lower than the previous month’s 50.9 points, S and P Global, in a report, said this is ‘in line with rising production requirements.’ An index of 50 and above indicates expansion, while figures lower than this show otherwise.

The report indicated a further improvement in the health of the Filipino manufacturing sector, though it was historically subdued and only marginal overall. The sector’s output was traced to an increase in new business, which was ‘broadly in line with that observed in July, with anecdotal evidence pointing to new customer acquisitions and improved underlying demand trends.’

Demand from overseas posted its fastest growth in the last seven months. However, employment remained flat, resulting in a build-up of backlogs of work. In an effort to fulfill new orders, manufacturers tapped into their post-production inventories, leading to a renewed and modest decline in stocks of finished goods in August. Reductions have now been noted in three of the last four survey periods, with some firms reporting that they released stock onto the market to mitigate potential damage at warehouses from heavy rainfall.

Maryam Baluch, economist at S and P Global Market Intelligence, noted that the latest PMI figures are ‘below their historical averages.’ She added that subdued cost pressures, coupled with manufacturers’ efforts to control their pricing to remain competitive, could provide the boost firms need to regain sales momentum.