The ocean and the beach in the Philippines

Philippines PMI October 2021

Philippines: Manufacturing PMI rises in October

The IHS Markit Manufacturing Purchasing Managers’ Index (PMI) rose to 51.0 in October from September’s 50.9. October’s result marked the strongest reading since March. As a result, the index moved further above the 50-threshold, signaling a faster improvement in business conditions compared to the previous month.

The higher reading owed itself to a reduction in the rate of decline in employment and a stabilization of new orders. A gradual lessening of Covid-19 restrictions largely drove the improved figures. However, inventory growth was slightly lower, while output fell at a slightly quicker rate. Meanwhile, delivery times lengthened notably, driven in part by ongoing global supply shortages. On the price front, input price inflation reached a more than three-year high, while selling prices increased, albeit modestly. Finally, firms’ expectations hit a three-month high, though they remained subdued nonetheless.

IHS Markit’s Shreeya Patel commented on the reading:

“October PMI data signaled a slight pick-up in growth across the Philippines manufacturing sector. Some restrictions continued to ease, and the demand environment showed tentative signs of improvement with new orders stabilizing after six months of decline. However, the goods producing sector was yet again hit by delivery delays, material shortages and rising costs, which consequently inhibited output growth. Such pressures are likely to persist over the next few months, but a key concern comes from firms only partly able to pass on higher costs given the relatively weak demand environment.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest