The Philippines’ manufacturing sector registered further improvement in May as both new orders and production expanded at quicker rates.
According to a report released yesterday, the S&P Global Philippines manufacturing purchasing managers’ index (PMI), a composite single-figure indicator of manufacturing performance, rose from April’s eight-month low of 51.4 to 52.2 in May.
The report said the latest headline figure extended the current run of expansion to 16 consecutive months and posted above the average recorded over the series history to indicate a solid upturn.
“The improvement in the health of the Filipino manufacturing sector during May was driven by quicker expansions in both factory orders and manufacturing output, which have now risen each month since September 2022. According to anecdotal evidence, the upturn in new orders stemmed from stronger demand conditions and the acquisition of new clients,” the report said.
“Demand from foreign markets also fared well in the latest survey period, with export volumes growing solidly, albeit at a slightly softer pace compared to April,” it added.
The report said the sustained uptick in new orders resulted in a turnaround in manufacturing employment.
“Businesses expanded their hiring activity for the first time in four months, and at the strongest pace since October last year,” it said.
Maryam Baluch, economist at S&P Global Market Intelligence, said vendor performance improved in May for the first time in almost four years.
“Companies reported that improved logistics routes helped shorten delivery times,” Baluch said.
“Moreover, while the latest data did signal a reintensification of price pressures in May, rates of inflation were weaker than their historical averages. In terms of future output, firms remain largely upbeat, though confidence did take a slight hit and dipped to an 11-month low,” Baluch added.
