The Philippines' manufacturing sector slipped into contraction in April as new orders fell sharply and cost pressures intensified, according to data released Monday by S&P Global.

The S&P Global Philippines Manufacturing Purchasing Managers' Index fell to 48.3 in April from 51.3 in March, marking the first contraction since November.

New orders declined at the fastest pace since August 2021, while export demand weakened further, with firms citing trade route disruptions and halted shipments.

Production stalled, and firms cut employment and purchasing activity, drawing down inventories to meet output needs.

Input costs rose at the fastest pace since December 2022, driven by higher energy and shipping costs linked to the Middle East war, prompting the sharpest increase in selling prices in 41 months.

Supplier delivery times lengthened, while business confidence improved to a 17-month high on expectations of stronger demand ahead.