September 3, 2024 | 12:00am
MANILA, Philippines — Manufacturing activity expanded at a steady pace in August despite weak demand for products in international markets, according to S&P Global.
In a statement yesterday, S&P Global said the Philippines’ purchasing managers’ index (PMI) for manufacturing was at 51.2 in August, unchanged from July.
The PMI is generated from a survey of around 400 manufacturers and considers the following: new orders, output, employment, suppliers’ delivery times and stocks of purchases.
A reading above 50 means there was an increase compared to the previous month, while below 50 indicates a decline.
“The Filipino manufacturing sector showed sustained and modest gains midway through the third quarter. Growth in output and new orders accelerated in the month, thereby highlighting improving demand trends,” S&P Global Market Intelligence economist Maryam Baluch said.
Demand from foreign customers, however, was weak as export sales fell for the first time since the start of the year.
Employment in the sector also declined, while buying activity cooled in August.
Baluch said these reflect the manufacturers’ cautious outlook on growth prospects.
To boost sales and to remain competitive, manufacturers only implemented slight increases in selling prices.
S&P Global said firms also registered longer lead times for inputs received from suppliers.
In the next 12 months, Filipino manufacturers expect continued growth in output.
Baluch said the latest data, however, showed a dip in the confidence level in the sector to a four-month low, further confirming that expectations surrounding the production outlook have softened.
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