April 1, 2026
MANILA – Factory activity eased to a three-month low in March as new export sales declined amid weak demand linked to the Middle East war.
The Philippines’ Purchasing Managers’ Index (PMI) fell to 51.3 in March from 54.6 in February, S&P Global reported on Wednesday.
While the reading remained above the 50-point threshold that separates growth from contraction, it marked the first slowdown since December.
Firms reportedly paused purchasing activity in March due to muted export demand, resulting in a more subdued increase in new orders.
READ: Philippine manufacturing activity climbed to 8-yr high in Feb
Iran war fallout
“The war in the Middle East weighed on the performance of the Philippines manufacturing sector, March PMI data showed. With vast majority of the country’s oil supply coming from the Gulf countries now under threat, the President has declared a national energy emergency,” said Maryam Baluch, economist at S&P Global Market Intelligence.
READ: PH to negotiate safe Strait of Hormuz passage with Iran
“Filipino manufacturers are exposed to shocks in oil and fuel prices rippling through global markets, as signalled via notable hikes in costs and charges, and softer demand conditions,” she added. /dda