Philippines’ PMI May 2025

According to the latest data from S&P Global Market Intelligence, the Philippines’ Purchasing Managers' Index (PMI) reached 50.1 in May 2025, above the 50-point threshold that separates growth from contraction.

Output fell for the second time in three months, since softer demand weighed on production.

Meanwhile, employment declined slightly for the first time in months, mainly due to voluntary resignations and unfilled roles. At the same time, export orders dropped amid rising global trade tensions and tariffs, creating uncertainty for overseas demand.

Inflation remained low and stable, which may support demand despite rising costs and output prices. Consequently, manufacturers remain cautiously optimistic about future orders, though overall confidence is relatively weak.

Domestic demand slowed after the election spending season but stronger activity is expected later this year as trade talks continue. Overall, companies are more cautious due to political and supply chain uncertainties affecting production plans.

In its latest outlook, the International Monetary Fund estimated the Philippines’ GDP growth rate at 5.5 per cent in 2025. 

The Association of Southeast Asian Nations (ASEAN) is a political and economic union of ten members, has 667 million people and a territory of 4.5 million Km2; is currently the third largest economy in Asia-Pacific and the fifth largest in the World. The ASEAN Economic Community (AEC) has a combined GDP of USD 4.2 trillion, according to estimates for 2025.