Factories ramp up hiring again as manufacturing picks up in August

Strongest growth in nearly 10 years.

Factories are hiring again as manufacturing posts its strongest growth in nearly 10 years, giving workers and businesses a welcome sign of stronger demand.

The S&P Global Philippine Manufacturing PMI rose to 54.9 in August from 51.8 in July, marking the sector’s biggest improvement since December 2016. A reading above 50 indicates expansion.

Factories increased production as new orders picked up, prompting them to step up purchases and raise staffing levels for the first time in five months. New orders grew at their fastest pace in six months, helped by new product and model launches, repeat business and a broader customer base.

Export orders also increased for the first time in six months, while manufacturers built up inventories as they prepared for stronger demand. Some factories, however, continued to deal with delayed supplier deliveries and had to draw from existing stocks.

There was also some relief on costs, with input-price inflation easing to its weakest level in six months.

S&P economist Maryam Baluch said manufacturing production rose at its fastest pace since 2016, supported by stronger demand. Business confidence also climbed to its highest level since November 2024, with companies expecting more orders and planning new product lines and expansion.

The hiring pickup means more job opportunities as factories respond to stronger demand, while businesses are gaining more confidence to produce, introduce new products and expand.

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