Key insights
- Philippine manufacturing PMI fell due to the Middle East conflict, causing higher energy costs and supply chain disruptions. This led to increased input and factory gate prices. While the direct impact on US equities is limited, it highlights global inflationary pressures and supply chain vulnerabilities that could indirectly affect US companies with international operations or those reliant on global supply chains.
Investing.com -- Filipino manufacturers experienced renewed inflationary pressures in March as the war in the Middle East drove up energy costs and disrupted supply chains, according to S&P Global’s latest Purchasing Managers’ Index data.
The Philippines Manufacturing PMI fell to 51.3 in March from 54.6 in February, marking a three-month low while still indicating expansion in the sector. The February reading had been the strongest since November 2017.
The slowdown reflected softer growth in both output and new orders, with manufacturers citing customer uncertainty related to the Middle East conflict. New export orders declined for the first time since December, with companies reporting weaker demand from foreign clients due to the war.
Production growth slowed to a moderate pace in March, the weakest in three months. Manufacturers said higher fuel prices and material scarcity linked to the Middle East war weighed on output.
Input prices rose at a historically sharp rate in March following slight decreases in February. Companies reported higher costs for gas and fuel, along with material shortages. Factory gate prices also increased at a historically strong pace.
The Philippines’ president has declared a national energy emergency, as the majority of the country’s oil supply comes from Gulf countries now affected by the conflict.
Purchasing activity stalled in March after three months of growth, with the index falling just below 50.0. Companies reduced their input inventories for the first time in four months as they utilized existing stocks while facing supply chain difficulties.
Supplier delivery times lengthened for a fourth consecutive month, though the deterioration was less pronounced than in February. Manufacturers linked the delays to higher gas and fuel prices and material shortages.
Employment growth continued for a third straight month but at the weakest pace in that sequence. Backlogs of work increased at the fastest rate in four months as delays in receiving inputs prevented companies from completing new orders.
Data were collected between March 12-24, 2026.
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