Philippine manufacturers have expressed concern over the sharp reversal in the local Manufacturing Purchasing Managers’ Index (PMI) to 47.4 in November 2025, from October’s 50.1 reading saying the contraction cuts across industry’s output, slowdown in industrial activity, new orders, exports and employment.
Elizabeth H. Lee, chairperson of the Federation of Philippine Industries (FPI), said in a statement that the November factory output, which is the strongest deterioration since August 2021, means weaker demand, tighter cash flow, and greater caution in hiring and investment among businesses.
For the broader economy, Lee noted that a PMI below 50 reflects slowing industrial activity, reduced purchasing, and declining confidence, which can ripple into consumer spending and supply chains.
“Corruption controversies are known to undermine investor trust, delay expansion plans, and possibly raise financing costs, and the Philippines has not been immune to these pressures,” said Lee.
While typhoon disruptions and soft demand were immediate drivers, FPI believes the downturn underscored the urgency of reforms now being advanced by the Department of Finance, Bureau of Internal Revenue (BIR), and Customs to restore fairness, close smuggling loopholes, and rebuild trust.
Reducing discretion, enforcing clear standards, and ensuring full traceability from port entry to tax audit would directly confront the issues exposed by the scandals.
By implementing these measures, manufacturers believe the current setback can be turned into a foundation for recovery, giving compliant firms a level playing field and consumers renewed confidence in the resilience of Philippine manufacturing.
For compliant firms, this translates into a level playing field, lower hidden costs, and renewed confidence.
