The ocean and the beach in the Philippines

Philippines PMI April 2020

Philippines: Downturn in the manufacturing sector deepens in April

The manufacturing Purchasing Managers’ Index (PMI), produced by IHS Markit, fell further to 31.6 in April from 39.7 in March, hitting a new series low. Consequently, the index remained mired below the 50-threshold that indicates deteriorating business conditions in the sector over the previous month.

Production, new orders and export sales all declined at the sharpest rates in the survey’s over four-year history in April as the extension of the lockdown—which is currently in place until 15 May—suppressed activity in the sector. In response, manufacturers notably reduced purchasing and laid off more workers in April; however, the pace of job shedding eased from that of March. Disruptions from the virus continued to weigh heavily on supply chains, with supplier delivery times lengthening to the greatest extent on record.

Input costs decreased in April due to weaker demand, although raw material shortages moderated the decline. In response, manufacturers reduced output charges in a bid to revive sales.

Goods producers’ confidence improved slightly in April from a series low in March as manufacturers were more optimistic that the lockdown measures would be lifted in the near term.

Commenting on April’s result, David Owen, economist at IHS Markit, stated:

“A key factor in this crisis will be employment. April data suggested the decline in job numbers softened from March, though it was still marked overall. However, a quick return to activity may bring about a strong recovery in jobs.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest