The Philippines’ manufacturing sector in June recorded its slowest growth in 10 months amid softer rates of expansion across both output and new orders, according to a report released yesterday.
The headline S&P Global Philippines Manufacturing Purchasing Managers’ Index, a composite single-figure indicator of manufacturing performance, posted above the no-change 50 mark for the 17th successive month in June, the report from S&P Global said.
However, the latest index reading of 50.9, down from 52.2 in May, posted the weakest improvement in business conditions since July 2022.
The report said output levels were raised further in June, but the pace of growth lost momentum, indicating only a fractional rise in manufacturing output. Moreover, the pace of the upturn was the weakest since the current run of expansion began in September 2022, it said.
“Though modest overall, new orders received by goods producers across the Philippines also rose at a softer pace in June. That said, firms highlighted that additional demand and new client wins drove the expansion,” the report said.
“Similarly, while helping to sustain growth in total factory orders, foreign demand for Filipino manufacturers goods also expanded in June,” it added.
Maryam Baluch, economist at S&P Global Market Intelligence, meanwhile said rates of input price and output charge inflation slowed and were the softest recorded in over two-and-a-half years.
“With inflationary pressures fading and global economic uncertainties still a looming threat to growth, the central bank maintained their policy rate at 6.25 percent for the second successive policy meeting in June. Going forward, the sector remains optimistic of growth in the coming 12 months,” Baluch said.
“However, global headwinds could dampen the outlook for manufacturers in the Philippines,” Baluch added.
