THE Philippines’ manufacturing sector posted another record low in April, according to IHS Markit’s manufacturing purchasing managers’ index (PMI), following the lockdown of a large part of the economy to ease the spread of the coronavirus disease.
According to a report released yesterday, the IHS Markit Philippines Manufacturing PMI fell further to 31.6 in April, from 39.7 in March, indicating another steep decline in operating conditions across the manufacturing sector.
The headline reading marked a new record low, the report said, with a deterioration recorded in all five sub-components of the index.
“Production fell rapidly, while new orders and export sales declined at record paces. Job shedding continued, although the rate of decrease softened from March,” the report said.
“Suppliers meanwhile struggled to complete deliveries, leading to a marked increase in lead times overall. At the same time, firms reduced input purchases at the quickest rate in the series history,” it added.
David Owen, economist at IHS Markit, said the Philippines’ manufacturing PMI joined a chorus of data demonstrating the widespread and severe impact of lockdown measures on the global economy in April.
“The headline PMI posted 31.6, another record low after March’s dismal figure. Output declined at a rapid pace, signaling that industrial production data is likely to be bleak during the lockdown period,” Owen said.
“A key factor in this crisis will be employment. April data suggested the decline in job numbers softened from March, though it was still marked overall. However, a quick return to activity may bring about a strong recovery in jobs,” he added.
Owen said manufacturers face difficulties with both overseas supply and demand, with exports falling sharply and supply chains struggling amid the pandemic.
“A removal of lockdown measures in the Philippines may temper these issues, but they will likely remain in some form for the duration of this global crisis,” he added.
