Philippines: Manufacturing PMI hits highest reading since March in November
The IHS Markit Manufacturing Purchasing Managers’ Index (PMI) came in at 51.7 in November, up from October’s 51.0. November’s result marked the best performance 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—the first in eight months—while the declines in output and employment softened, as economic activity in the month was boosted by looser Covid-19 restrictions. Despite the improving demand landscape, firms continue to suffer from global supply chain bottlenecks and high energy prices, with suppliers’ delivery times rising at a rapid pace and input inflation hitting the highest level since March 2018. Meanwhile, business sentiment hit a 21-month high, although it remained subdued by historical standards.
IHS Markit’s Shreeya Patel commented on the reading:
“Stockpiling and efforts to boost production were a key theme in the latest release, but supply-side issues and the lack of availability of raw materials weighed on production. Voluntary resignations were also of concern with headcounts falling continuously over the last year-and-a-half. Encouragingly though, firms were able to keep backlogs at bay, suggesting that companies, for now, are dealing with labour shortages. On the Covid-19 front, low vaccination rates remain one of the sectors largest threats. The Philippines government nevertheless remains committed to inoculating the population before the end of 2022.”