The country’s manufacturing sector grew further at the start of this year, posting a seven-month high of 53.5 purchasing managers’ index (PMI).
Financial information firm S&P Global said in its report released Feb. 1 that production levels and buying activities increased sharply in January, while price pressures “continued to moderate” and “operating conditions improved solidly.”
“An expansion in output was registered for the fifth month running. The pace of growth quickened on the month, to signal a sharp rise in production levels. Anecdotal evidence pointed to increasing demand for Filipino manufacturing goods,” it said in a news release.
“Additionally, foreign demand for goods manufactured in the Philippines also picked up in January. Growing international client numbers and stronger demand from China helped revive exports for the first time in 11 months,” it added.
S&P Global also noted a rise in buying activity with some manufacturing companies reporting backlogs or unfinished work.
“Stronger demand conditions also resulted in manufacturers relying on inventories. For the first time in a year, holdings of post-production inventories fell as firms utilised stocks to meet higher new orders,” it said.
However, it noted that “hiring activity across the Filipino manufacturing sector remained weak” despite the developments in demand, with “only a fractional rise in employment during January.”
S&P Global nonetheless said the continued positive manufacturing performance has “resulted in higher levels of optimism across surveyed business.”
The data for the eS&P Global Philippines Manufacturing PMI was generated from survey responses of manufacturers. AG– gb
