Philippines: Manufacturing sector conditions improve notably in June
The manufacturing Purchasing Managers’ Index (PMI), produced by IHS Markit, came in at 49.7 in June, a notable improvement after two bleak readings in April and May (May: 40.1). Despite the rise, the PMI still lies below the crucial 50-threshold, signaling a contraction in the manufacturing sector.
June’s improvement was driven by a rise in output, which grew for the first time in four months as firms restarted activities. In addition, new orders fell at a more modest pace in the month. That said, firms continued to shed jobs at a sharp pace and backlogs of work dropped pointing to ample spare capacity.