Philippines: Manufacturing sector conditions remain depressed from Covid-19 in May
June 1, 2020
The manufacturing Purchasing Managers’ Index (PMI), produced by IHS Markit, came in at 40.1 in May, up from April’s record-low of 31.6. Despite the rise, May’s reading still marked one of the worst results on record and points to a steep deterioration in business conditions in the sector.
Looking at the details of the release, output and new orders continued to contract sharply amid shut businesses and travel restrictions. In addition, jobs were shed at a pronounced rate and companies refrained from making purchases. Meanwhile, input costs ticked up in May partly due to higher raw material prices.