POSITIVE PERFORMANCE. Manufacturing operation of SteelAsia Manufacturing Corp. in its plant in Compostela, Cebu in a photo taken on May 23, 2024. Latest manufacturing Purchasing Managers’ Index (PMI) of S&P Global reported that the Philippines' sector continued to improve last month. (PNA photo by Kris M. Crismundo)
MANILA – The Philippine manufacturing sector continued to post a positive performance in May 2024, the S&P Global Manufacturing Purchasing Managers’ Index (PMI) reported Monday.
The country’s manufacturing score last month recorded an index higher than the neutral score of 50, at 51.9.
However, the growth in May 2024 was slower than the April 2024 index of 52.2.
“The Filipino manufacturing sector continued to report further gains mid-way through the second quarter, with growth sustained in new orders and output. Further expansions in business requirements supported a rise in purchasing activity and inventories,” S&P Global Market Intelligence economist Maryam Baluch said.
In terms of employment, Philippine-based manufacturing companies reported job shedding for the first time since December 2023, with the rate of decrease the fastest in nine months.
“Though with backlogs continuing to fall, goods producers still appear equipped to deal with tasks on hand. Latest data also signaled a fall in input prices, with some companies attributing this to a switch to new suppliers,” Baluch said.
On the price front, input costs fell for the first time since April 2020, but firms continued to increase charges as manufacturers wished to maintain and build their margins.
“Subdued inflationary pressures and a further improvement in the demand picture indicates that economic growth will likely be sustained in the coming months,” Baluch added.
Meanwhile, the level of optimism among producers on the future of their business for the next 12 months hit a nine-month high. (PNA)
