Philippines: Manufacturing sector deteriorates in October
November 3, 2020
The manufacturing Purchasing Managers’ Index (PMI), produced by IHS Markit, fell from 50.1 in September to 48.5 in October. The PMI thus moved below the crucial 50-threshold, signaling worsening operating conditions in the manufacturing sector.
October’s decline was driven by a renewed fall in new orders and a sharper contraction in output. Employment also fell as firms reacted to limp demand. On the price front, input costs continued to increase, while output prices increased only marginally due to efforts to boost sales.
Shreeya Patel, economist at IHS Markit, said:
“The reopening of businesses will support a pick-up in the economy, although infection rates in the Philippines remain high compared to regional peers. Until virus cases are tamed domestically and globally, we are likely to see a protracted recovery in manufacturing production.”
Author: Oliver Reynolds, Economist