The ocean and the beach in the Philippines

Philippines PMI August 2023

Philippines: Manufacturing sector conditions deteriorate for the first time in two years in August

The S&P Global Manufacturing Purchasing Managers’ Index (PMI) came in at 49.7 in August, down from July’s 51.9. Consequently, the index dropped below the 50.0 no-change threshold, signaling a deterioration in manufacturing sector operating conditions from the previous month. August’s result marked the worst performance since August 2021.

August marked the first decline of the index in two years due to a drop in new business and weaker output growth. Waning domestic demand and poor weather conditions drove the deterioration; external demand growth also softened sharply. In turn, employment in the sector decreased at the strongest pace in 23 months. More positively, firms built on their stocks in August, anticipating stronger demand ahead.

On the price front, input cost pressures intensified in August; firms reported rising fuel and other raw material costs as the culprit. Meanwhile, optimism in the sector rose to a seven-month high.

Maryam Baluch, economist at S&P Global Market Intelligence, commented on the release:

“Weak underlying demand trends as pointed by the first drop in new orders in a year and the ongoing reductions in staffing levels shows visible cracks in the sector. Moreover, headwinds from the high interest rate environment and inflation, as well as China’s less than expected post Covid-19 growth, could potentially result to subdued growth in the coming months.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest