Philippines PMI December 2021


Philippines: Manufacturing PMI hits highest reading since March in December

January 3, 2022

The IHS Markit Manufacturing Purchasing Managers' Index (PMI) came in at 51.8 in December, up from November's 51.7. December's result marked the best reading since March. Consequently, the index moved further above the 50-threshold, signaling a faster improvement in business conditions compared to the previous month.

The stronger reading came amid an increase in new orders and output, with the latter increasing for the first time since March. Meanwhile, the decline in employment softened. Despite the improving demand landscape, firms continued to suffer from global supply chain bottlenecks and high energy prices, with stocks of purchases rising and input inflation remaining elevated. Moreover, the global spread of the Omicron variant hit new export orders, denting momentum somewhat. Meanwhile, business sentiment hit a 23-month high.

IHS Markit’s Shreeya Patel commented on the outlook:

“Looking ahead, the Omicron variant will almost certainly hit the Philippines manufacturing sector, and in more ways than one. Supply-side issues are likely to persist while case numbers and input price inflation could climb further as we head into the new year.”

FocusEconomics Consensus Forecast panelists see manufacturing output rising 4.9% in 2022, which is down 0.2 percentage points from the previous month’s estimate, and 5.9% in 2023.


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Philippines PMI Chart

Philippines PMI December 2021

Note: Philippines Manufacturing Purchasing Managers’ Index. Readings above 50 indicate an overall increase compared to the previous month while readings below 50 indicate an overall decrease.
Source: IHS Markit.

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