The country’s Manufacturing Purchasing Managers’ Index (PMI) posted a rebound in December 2025 to 50.2 from the previous month’s 47.4 level, which an industry official said is a sign of stabilization, not seasonality.

An index of above 50 indicates expansion, while those below 50 shows otherwise.

In a statement Monday, Federation of Philippine Industries (FPI) Chairperson Beth Lee said the 5.9 percent jump of the manufacturing PMI “reflects genuine stabilization rather than Christmas restocking.”

“The PMI shows we are back in positive territory —a clear sign of resilience. The challenge and opportunity now is to turn this recovery into lasting industrial strength by investing in innovation, diversification, and resilience,” she said.

Lee said the primary factors for the improvement include normalization of factories’ operations after the hit from several typhoons last November, the improvement in orders after a slowdown since August, and resumption of purchasing activity amidst supply chain challenges.

“Importantly, the rebound was domestically led; as export orders remained subdued at the close of 2025,” she said.

“Looking ahead, export growth in 2026 could provide a stronger external tailwind, particularly in electronics, which account for nearly half of Philippine exports. If realized, this export momentum will help sustain PMI readings above 50, signaling broader expansion in the manufacturing sector.”

Catalysts for this year include domestic resilience against natural calamities and supply chain shocks, diversification from the current dual structure of food processing and electronics, and strengthening mid-complexity industries like machinery, chemicals, and wood products “to reduce volatility and broaden employment opportunities.”

Lee said the country’s manufacturing sector accounts for around 15.7 percent of the domestic economy’s annual output, below the regional level of between 22 percent and 27 percent.

This situation, she said, “highlights the urgency of Tatak Pinoy reforms to diversify and deepen industrial capacity, ensuring manufacturing becomes a stronger engine of national growth.”

“December’s rebound is more than just a number —it is a signal that Philippine manufacturing can recover quickly when demand stabilizes. We are optimistic for this year 2026, banking on the expansion and implementation of real reforms that affect businesses, together with the strengthening of initiatives like Tatak Pinoy that can build long-term resilience for the country’s manufacturing base,” she added. (PNA)