Philippines: Manufacturing sector stabilizes in September
October 1, 2020
The manufacturing Purchasing Managers’ Index (PMI), produced by IHS Markit, rose from 47.3 in August to 50.1 in September. The PMI thus moved slightly above the crucial 50-threshold, signaling marginally improving conditions in the manufacturing sector.
September’s uptick was driven by a softer fall in output and the first increase in new orders since February. Export orders also returned to growth, although employment declined. On the price front, input costs rose at a solid pace, while output prices increased only marginally due to tough competition.
Shreeya Patel, economist at IHS Markit, said:
"According to firms, the ongoing restrictions related to the Covid-19 pandemic continued to limit the performance of the sector, with some businesses forced to pare back operations. On a more hopeful note, stronger business sentiment and efforts to rebuild stocks suggest panellists are preparing for an improvement in demand over the coming months, although optimism continues to rest on the development of the pandemic.”
Author: Oliver Reynolds, Economist