The Philippine manufacturing sector ended 2024 on a high note driven by the strong growth in output and new orders, S&P Global said in a report on Thursday.

The country’s manufacturing PMI rose to 54.3 in December from 53.8 in November, and was the joint-strongest since November 2017 (alongside that seen in April 2022).

“The Filipino manufacturing sector ended 2024 on a positive note, with further improvements in demand resulting in sharp and significant increases in new orders and output,” said S&P Global Market Intelligence economist Maryam Baluch.

The PMI is an indicator of manufacturing performance.

S&P Global said both output and new orders rose sharply and at broadly similar rates, marking the strongest growth since April 2022.

According to the report, the strong growth was supported by robust underlying demand trends, product diversification, and new client acquisitions.

Demand from international markets also went up, marking the first increase in new export orders in five months.

“Firms also expanded their purchasing activity to meet production requirements. December highlighted a moderation in inflationary pressures, marking a shift from the spike observed in November. In fact, cost burdens and output charges rose at historically muted rates,” said Baluch.

Baluch, however, said that while production efficiency allowed manufacturers to stay on top of tasks at hand, it also led to a slight drop in employment.

“However, this could be a temporary blip, especially if demand remains resilient as anticipated throughout 2025,” Baluch said.

For this year, firms remained confident that output would rise, amid hopes that demand trends will strengthen further and plans to launch new products. (PNA)