Philippines: Manufacturing operating conditions improve marginally in October
The manufacturing Purchasing Managers’ Index (PMI), produced by IHS Markit, rose to 52.1 in October from 51.8 in September, marking the joint-highest print in nine months. Consequently, the index rose further above the 50-threshold that separates expansion from contraction in the manufacturing sector.
The fractionally better expansion in October was driven by stronger new business inflows amid a recovery in new export orders, which increased for the first time in five months in October. Meanwhile, production was broadly stable from September. Despite rising demand, firms continued to work through backlogs of business at a rapid rate, and hiring activity remained very subdued. Meanwhile, firms increased purchasing activity at a solid, albeit slower pace. On the supply side, delivery times increased at the quickest rate this year in October due to traffic issues.
Turning to prices, input cost inflation rose at a softer pace in October on higher raw material prices amid material shortages. Nevertheless, output charges fell to their lowest level since data was first collected in January 2016 in a bid to boost new business growth.
Finally, manufacturers’ confidence fell to a new record low in October, but remained positive overall.