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Philippines: Manufacturing PMI hits 8-month high
The Philippine manufacturing sector continued to recover in November with demand expanding for the first time in eight months, the IHS Markit said.
Results of the latest IHS Markit survey released on Wednesday showed that the Philippine manufacturing Purchasing Managers Index (PMI) rose to an eight-month high of 51.7 in November from 51 in October.
“Latest PMI data continued to signal a recovery in operating conditions in the Philippines with the headline figure at an eight-month high. Supporting this was an expansion in new orders, which was the first uptick since the end of the opening quarter of the year. Output, meanwhile, fell at the softest pace in eight months and inched closer towards stability during November,” IHS Markit Economist Shreeya Patel said.
The PMI takes into account new orders, output, employment, suppliers’ delivery time, and stocks. Readings above 50 signal an expansion; below that, a contraction.
New orders rose for the first time since March due to high client numbers, increased footfall, and improvement in customer demand.
With the increase in new orders, manufacturing companies raised their buying activity.
Survey results, however, revealed that production continued to decline for the eight consecutive months.
IHS Markit said some firms noted that delays in receiving inputs, as well as material and staff shortages that constrained capacity.
Vendor performance likewise deteriorated due to traffic issues, port congestions, and difficulties in sourcing materials.
Firms, however, remain optimistic that output will improve over the course of the year due to hopes of a return to normality and greater demand.
Source: https://www.manilatimes.net/2021/12/02/business/top-business/manufacturing-pmi-hits-8-month-high/1824398