July 17, 2025 – In her talk at SupplyLink 2025, Janette Toral, Officer-in-Charge of i-Metrics Asia-Pacific Corporation, emphasized that the Purchasing Managers Index (PMI) has become a critical early-warning system for supply chain professionals and business leaders navigating economic uncertainty.

Drawing on the PMI Philippines Composite Index, Toral shared that business activity expanded from January to April 2025, peaking at 52.73, but slowed in Q2, with the index softening to 50.49 in June.

“This is not just a chart. This is your business radar,” Toral said. “PMI gives you time to adjust—before revenues drop or delays hit.”

Sectoral Shifts Signal Planning Opportunities Manufacturing rebounded in June (50.29) after a contraction in May, driven by improvements in orders and production.

Retail and Wholesale showed steady recovery, with the index reaching 50.95 in June—indicating consumer spending focused on essentials.

Services, after peaking in April at 55.62, cooled down to 50.11 in June, with BPO and finance sectors facing demand pressure.

“If you're in logistics, retail, manufacturing, or finance—this index tells you when to stock up, hold off, or renegotiate,” she added.

Supply Chain & Price Signals According to Toral, supplier delivery performance improved in Q2, while inventory levels dropped, pointing to leaner operations. Inflation fell to 1.3% in May, the lowest in five years, but operating costs—especially in the services sector—remained high due to internal pressures such as energy and administrative expenses.

Call to Action for Business Leaders Toral concluded with a call for organizations to actively monitor and apply PMI data:

Integrate PMI insights in monthly planning cycles

Use sector-level data to adjust procurement, staffing, and pricing

Treat PMI as a leading indicator, not a lagging one

“It’s not enough to look at numbers. We must translate them into action. PMI gives every business—big or small—the ability to be proactive, not reactive,” she said.