Higher remittance inflows from overseas Filipino workers (OFWs) intended for the Christmas holiday, along with the government’s stepped-up infrastructure spending, are expected to benefit the manufacturing sector.

Elizabeth Lee, Federation of Philippine Industries (FPI) chairperson, said OFW remittances are normally large in the last months of the year, given the need for holiday shopping.

She said manufacturers benefit from this through sales, which she hopes will remain strong amid elevated domestic inflation.

Another factor is the government’s bid to increase infrastructure spending to address its drop last year following the flood control issue that hurt domestic growth since the second half of 2025.

Lee said the good news is that infrastructure projects are now being scrutinized to ensure old flaws in the system are addressed.

“There is really a push for infrastructure projects. Even the agencies, they said, they also know that we need to spending on infrastructure for employment,” she said.

With higher demand for products because of these two factors, Lee expressed optimism for the manufacturing sector, amidst its drop last September.

The September 2026 S&P Global Philippines Manufacturing Purchasing Managers’ Index (PMI) slipped for the first time since April to 49.6 from the nine-year high 54.9 index.

An index of over 50 means expansion, while a level below 50 means contraction.

“We are still positive until the end of the year regardless of whether the PMI is going to be contracting or not,” she added. (PNA)