Philippines: Manufacturing PMI reaches a ten-month high in October
According to data released by Nikkei and IHS Markit, the manufacturing Purchasing Managers’ Index (PMI) rose to 54 points in October from 52.0 points in September, climbing further above the critical 50-point threshold that separates expansion from contraction in the manufacturing sector.
Accelerating output and new orders growth point to improved business conditions at the outset of the fourth quarter. New business inflows rose at the sharpest rate in five months in October, while output was ramped up to meet strong demand. Moreover, firms scaled up both purchasing activity and hiring activity in response. Backlogs of work continued to fall, partly due to higher staff levels. Supplier delivery times, however, lengthened largely due to congestion at Manila’s port, coupled with longer customs checks and recent bad weather.
Inflationary pressures were sharp in October, with output prices rising at the fastest pace in the survey’s history. Around one quarter of firms charged higher prices this month, and referred to a weaker peso, higher material costs, and the effect of tax changes under the TRAIN laws as the main factors behind the higher prices.
Lastly, business confidence concerning output in the year ahead fell in October but remained elevated overall.