Philippine manufacturing activity returned to expansion in May, driven by stronger domestic demand despite ongoing supply chain pressures, according to S&P Global.
The country's Purchasing Managers' Index (PMI) rose to 50.8 in May from 48.3 in April, crossing the 50-point threshold that separates growth from contraction. S&P attributed the rebound to a fresh rise in new orders, following a sharp decline in April, fueled by improved client demand and new customer wins.
However, the recovery remains fragile. Supply chains stayed taut, firms continued to reduce inventories, and operating expenses rose steeply. As a result, selling prices were raised sharply, though at a slower pace than costs.
The data signals cautious optimism for the sector, which had contracted in April amid global uncertainties.