Philippines: Manufacturing PMI declines in December
The manufacturing Purchasing Managers’ Index (PMI), produced by IHS Markit, edged down to 49.2 in December from 49.9 in November. The PMI thus moved further away from the crucial 50-threshold, and signaled deteriorating conditions in the manufacturing sector.
December’s decline was largely attributed to a decline in output—the sharpest drop in series’ history—, amid lingering Covid-19 restrictions and unfavorable weather conditions. Moreover, employment continued to fall markedly in December, amid still-muted demand conditions and declining levels of outstanding business. Meanwhile, input price costs rose for the eighth month running, prompting manufacturers to increase their selling prices. Lastly, firms’ confidence jumped to a ten-month high, on expectations of firming demand.
Shreeya Patel, economist at IHS Markit, stressed:
“Although the latest overall sector contraction was only marginal, domestic demand remains challenging which may stymie progress on the lengthy road to recovery.”