A stumble in the factory hit the Philippines in March, as soaring power bills and pricier supplies dragged down output, aligning with customer needs, fresh data show. S&P Global’s recent report highlights shifts in PMI numbers, with the index dropping sharply to 51.3 after sitting at 54.6 just a month earlier. That dip brings it to its softest point since December, falling short of earlier momentum, the index still held its ground past 50, making expansion rather than decline. Yet behind that figure, signs pointed to a cooling momentum across factories. Output crept up more slowly, with new orders following suit, dragged down by rising costs biting into operations. With customer demand shaky, firms moved cautiously, holding back on aggressive moves.
Fuel and power costs climbed, hitting growth hard because the Philippines imports most of its oil and factories feel every jump in global prices. With unrest continuing across parts of the Middle East, energy supplies are under pressure, weighing on company expenses. Higher input bills now stretch the budget that once had room to spare. March brought a small drop in new export orders, the first since December. Although exports had held steady earlier, they began to slip again now. Global market uncertainty weighed on company decisions, slowing momentum and contributing to the weaker overall intake of fresh work that month.
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Facing headwinds, makers still saw light ahead for next year’s path, with growth picking up when buying patterns settle and global conflicts cool off. Workers kept getting hired across factories for the third straight month, but fewer roles opened than before. The climb isn’t as steep now, and a few signs point to lasting trouble; through March might just be a pause. What happens next hangs on oil costs, overseas appetite, and how smoothly goods move worldwide.
