A factory in the Philippines (INQUIRER FILE PHOTO)

MANILA, Philippines — The typical surge in demand during the holiday season helped local manufacturers cap 2024 on a positive note, with the sector’s health reaching its best shape in over seven years in December.

A monthly survey of around 400 companies showed the Philippines’ Purchasing Managers’ Index (PMI), a gauge of manufacturing performance, went up to 54.3 in the final month of 2024, from 53.8 back in November, S&P Global reported on Thursday.

Article continues after this advertisement

The latest reading not only marked the 16th consecutive month that the PMI had settled above the 50-mark that separates growth from contraction, it was also the strongest result since November 2017.

FEATURED STORIES BUSINESS BIZ BUZZ: Trouble brewing in Alabang BUSINESS An open letter to the President for year 2025 BUSINESS Sam Cariño named Asialink president and CEO after 20 Years at Global Dominion

READ: Marcos pitches PH as ideal hub for smart, sustainable manufacturing

cleopatra slot machine

Maryam Baluch, economist at S&P, said local producers saw “further improvements in demand” amid a “sharp and significant” increase in new orders.

Article continues after this advertisement

That, in turn, ramped up the production of output. To note, output and new orders are the two largest components of the PMI calculation.

Article continues after this advertisement

“The Filipino manufacturing sector ended 2024 on a positive note,” Baluch said in a commentary. “Firms also expanded their purchasing activity to meet production requirements.”

In separate advisories on Monday, Seaoil, PetroGazz, CleanFuel, Caltex, and Shell Pilipinas said the price of gasoline would decrease by P1.55 a liter.

Article continues after this advertisement

READ: PH manufacturing sector growth hit 2-year high in September

Job cuts

But the growth in manufacturing activity did not translate to more jobs.

Article continues after this advertisement

S&P said companies made a “minor reduction” to their head count, snapping three consecutive months of job creation. Survey results showed the rate of backlog depletion was sharp and the most pronounced in 13 months due to production efficiency, allowing firms to cut payroll costs.

Baluch nevertheless said the job shedding might be a “temporary blip,” especially if demand remains resilient “as anticipated throughout 2025.”

Your subscription could not be saved. Please try again. Your subscription has been successful.

Subscribe to our daily newsletter

SIGN ME UP

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.lvbet

READ NEXT Petron eyes more auto service facilities CEOs look back on eventful 2024, look forward to a better 2025 EDITORS' PICK Kanlaon Volcano spews ash, logs 28 volcanic quakes Cloudy, wet Thursday in many parts of PH Sofronio Vasquez to stage solo Cebu concert this month NBA: Tyler Herro, Heat send Pelicans to 11th straight defeat OSG: Pogo asset seizures, birth records purge next DOH logs 577 road accidents from Dec. 22 – Jan. 2 MOST READ Dismissed Mandaue Mayor Jonas Cortes files SC appeal over COC The highest-paying jobs in the Philippines for 2025 BIZ BUZZ: Trouble brewing in Alabang Bong Go extends holiday greetings to Filipinos Follow @FMangosingINQ on Twitter --> View comments