Manufacturing Sector Improvement Indicates Economic Recovery

The efforts in rebooting the economy has been working for the Philippines so far as the manufacturing sector is improving, according to IHS Markit Philippines Manufacturing Purchasing Managers’ Index (PMI) survey in January.

In the PMI survey, the manufacturing sector has score 52.5, an improvement first time since March last year.

Department of Trade and Industry (DTI) Secretary Ramon Lopez said that the improvement of the manufacturing sector indicates that the economy is improving.

“We are encouraged by the signs of economic recovery that we are seeing, not only in the January manufacturing PMI but also those that point towards longer-lasting economic rebound. Clearly, the whole-of-government effort on the calibrated and safe reopening of the economy was key to this,” Lopez said.

Other programs that proved essential to the improving manufacturing sector include the Roads Leveraging Linkages for Industry and Trade (ROLL-IT) program of the Department of Public Works and Highways that aims to improve mobility of goods and people; Department of Science and Technology’s programs to improve the competitiveness of micro, small and medium enterprises (MSMEs) such as the Small Enterprise Technology Upgrading (SETUP) program, the Collaborative R&D to Leverage Philippines Economy (CRADLE) program, and the Business Innovation through Science and Technology (BIST) for Industry program; and Department of Labor and Employment’s programs for training and reskilling the workforce as well as livelihood packages and virtual platform for referral and placement for the unemployed, according to PNA.

Lopez attributed the improvement of the manufacturing sector to the REBUILD — Revitalizing Businesses, Investments, Livelihoods, and Domestic Demand program. (ASC)