Philippine manufacturing sentiment improves as cost pressure builds
New orders and output improved while power and freight costs rose, leaving manufacturers cautious on expansion.
What happened
The Philippine manufacturing PMI stayed in expansion for a second consecutive quarter, led by new orders and output, with supplier delivery times shortening.
Over the same period industrial power tariffs and inter-island freight rose, lifting input costs; some firms passed through price increases.
Who is affected
- Export-oriented manufacturers: better orders, but power costs press margins;
- Building materials and consumer goods: freight raises landed cost; price bands need re-modelling;
- Companies planning plants: revisit power tariff and reliability assumptions at site selection.
Our observation
The improvement is uneven, concentrated in electronics components, food processing and packaging. Expansion decisions are broadly deferred until the cost trend is clearer.
Compiled by LINODA. Official releases and primary statistics prevail.
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