The Philippines' manufacturing sector continued to expand in August but at a softer pace than the month prior, according to the latest S&P Global Purchasing Managers' Index report released on Monday.

The index edged down to 50.8 in August from 50.9 in July, staying above the 50 threshold that separates contraction from expansion.

During August, output and new orders continued to rise, albeit modestly, while new business continued to grow. Employment during the month was also stable.

On the pricing side, inflationary pressures stayed mild. Manufacturers faced faster cost increases in August, partly due to higher material prices.

Looking ahead, manufacturers maintained an optimistic outlook for output for the next year, S&P said.