The country’s manufacturing sector showed a stronger improvement in its operating conditions in November, according to a report released by S&P Global yesterday.
The headline S&P Global Philippines manufacturing purchasing managers’ index, a composite single-figure indicator of manufacturing performance, rose to 53.8 in November from 52.9 in October.
This marks the 15th consecutive monthly improvement in the health of the Filipino manufacturing sector, the report said.
According to the report, production levels grew at a faster pace as demand continued to strengthen, with companies gearing up for the anticipated sales growth in the coming months. Employment, input buying and post-production holdings also saw increases, reflecting a proactive approach to meeting higher production needs.
However, the report said the consecutive typhoons which recently hit the country have led to longer lead times for inputs.
The incidence of delays was the most marked since October 2021, it said.
Additionally, the latest data indicated a further escalation in inflationary pressures, with input costs and output charges climbing at their fastest rates in 21 months, respectively.
“November saw the Filipino manufacturing sector ramping up production in anticipation of greater sales in the coming months. Hiring, purchasing activity and post-production inventories were also raised in preparation. New sales recorded further growth, as demand conditions continued to improve,” Maryam Baluch, economist at S&P Global Market Intelligence, said.
“However, some supply-side challenges acted as headwinds, as adverse weather conditions resulting from the recent typhoons hitting the country and rising inflationary pressures make a difficult environment for manufacturers,” Baluch added.
Nonetheless, Baluch said firms remained optimistic about future output, with hopes that improved demand trends and the upcoming election year will provide a boost to the sector.
