Philippines PMI May 2022


Philippines: Manufacturing PMI deteriorates, but remains in expansionary territory, in May

June 1, 2022

The S&P Global Manufacturing Purchasing Managers' Index (PMI) came in at 54.1 in May, down from April's 54.3. Nevertheless, the index remained above the 50.0 no-change mark, pointing to a continued, albeit moderating, improvement in business conditions from the previous month.

The moderation of the PMI in May was only slight: it marked the second-highest reading since November 2018, with output and new orders continuing to grow strongly. The PMI was supported by improved domestic demand, which was boosted by the recent easing of Covid-19 restrictions. The robust reading led to an increase in employment for the first time since February 2020—just before the onset of the global pandemic—and post-production stocks rising at the fastest rate since December 2016 in anticipation of strong sales ahead. That said, foreign demand weakened at a faster rate than that seen last month due to Covid-19 lockdowns in China, while inflation remained at record highs.

S&P Global’s Maryam Baluch commented on the manufacturing sector’s outlook:

“Business confidence remained strongly optimistic, with firms hopeful of greater output in the coming 12 months. However, the downside risks to the sector come in the form of persistent inflationary pressures and supply chain disruptions which have been further exacerbated by the war in Ukraine and China's zero-Covid policy.”

FocusEconomics Consensus Forecast panelists project GDP to increase 6.7% in 2022, which is up 0.2 percentage points from last month’s estimate. For 2023, they forecast economic growth of 6.1%.


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Philippines PMI Chart

Philippines PMI May 2022 0

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: S&P Global.

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