Philippines: Manufacturing sector conditions deteriorate at faster pace in August amid fresh lockdown measures
The manufacturing Purchasing Managers’ Index (PMI), produced by IHS Markit, fell from 48.4 in July to 47.3 in August due to stricter Covid-19 restrictions. The PMI lies below the crucial 50-threshold, signaling worsening conditions in the manufacturing sector.
August’s downturn was driven by sharper falls in output and new orders, while employment continued to drop. Export orders declined at only a modest rate, due to laxer coronavirus restrictions overseas, while input and output prices increased.
David Owen, economist at IHS Markit, said:
“The recent steep increase in new COVID-19 cases led the government to impose stricter quarantine measures in Manila and the surrounding provinces in August. The new measures meant that certain groups were unable to travel and some businesses were forced to reduce operating capacity. […] Businesses remain less confident than normal of an increase in output over the coming year, reflecting the uncertainty of the path of the pandemic and lockdown measures.”