PMI is a monthly survey-based indicator that tracks business conditions such as new orders, production, employment, inventories, and supply chain activity. A reading above 50 indicates that more firms are reporting improving conditions, while a reading below 50 means more firms are experiencing deterioration. A PMI reading below 50 does not signal recession, but it does indicate that business activity is softening during the month.

From a corporate governance and enterprise risk perspective, this matters because PMI functions as an early-warning indicator—often preceding GDP, revenue slowdowns, and employment adjustments.

Key governance-relevant signals from the November data:

• Demand risk: New orders and business activity weakened across all sectors

• Operational risk: Leaner inventories and cautious procurement point to defensive postures

• Workforce risk: Employment contracted across sectors, indicating hiring freezes and capacity adjustments

• Margin risk: Cost pressures remain sticky despite low inflation, compressing operating margins

• Liquidity & cash flow risk: Retail and services softness suggests slower sales conversion and turnover

Purchasing Managers Index Philippines by PISM, SOFSM, i-Metrics, provides a multi-sector view—covering manufacturing, retail-wholesale, and services, which together represent the core revenue and employment engines of the Philippine economy.

For boards, risk committees, and senior management, PMI insights support:

• Early identification of macro and sectoral risks

• Better-informed budgeting, capital allocation, and inventory decisions

• Workforce and outsourcing strategy discussions

• Supply chain resilience and vendor risk assessments

• Scenario planning and stress testing ahead of year-end and 2026

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