Philippines: Manufacturing PMI rises in February
March 1, 2017
The Philippines’ manufacturing industry gathered momentum in February and remained firmly in expansionary territory. The manufacturing Purchasing Managers’ Index increased from 52.7 in January to 53.6 in February, according to a release provided by Nikkei and IHS Markit. The index thus mover further above the 50-point threshold which indicates an expansion in the manufacturing sector.
February’s acceleration came mainly on the back of stronger growth in new orders and employment. Overall new orders expanded at a faster pace than in January, although orders for exports lost some strength. This was due to disruptions in production schedules caused by a shortage of certain raw materials. Stronger new orders and the need to accumulate stocks led output to grow at a robust, if somewhat more moderate, pace. Employment consequently continued to increase and backlogs of work, thanks to the additional staff, declined. Regarding price developments, Bernard Aw, economist at IHS Markit, commented: “because of further depreciations of the peso and higher prices for globally-traded raw materials, imported inputs became more expensive, which influenced the behavior of Filipino manufacturers. Input cost inflation surged to a record high during February, which led to firms increasing their selling prices and passing some of this inflation on to clients.”