The Philippine manufacturing sector has sustained its improvement in August, as growth in new orders picked up, even as international sales declined.
The headline S&P global Philippines manufacturing purchasing managers’ index, an indicator of manufacturing performance, remained unchanged from July, posting 51.2 again in August.
According to the report released yesterday, the health of the Philippines manufacturing sector has now strengthened in successive months for a year, although with latest data showing only a modest improvement.
“Underlying data signalled improved demand trends, with Filipino goods producers recording the strongest uptick in new orders in three months. However, demand from foreign customers faltered in August, as new exports sales fell for the first time since the start of the year,” the report said.
Nonetheless, overall growth in new orders supported a stronger uptick in output during August.
“The Filipino manufacturing sector showed sustained and modest gains midway through the third quarter. Growth in output and new orders accelerated on the month, thereby highlighting improving demand trends,” Maryam Baluch, economist at S&P Global Market Intelligence, said.
“However, employment fell, and buying activity cooled, suggesting that manufacturers remain cautious about growth prospects,” Baluch added.
The report said expectations among firms in the Filipino manufacturing sector point to further expansions in output in the coming 12 months.
However, latest data showed a dip in the level of confidence, thereby suggesting more modest production gains are anticipated compared to those seen in July.
“Confidence levels waned in the latest survey period and hit a four-month low, further confirming that expectations surrounding the production outlook have softened,” Baluch said.
