PH Manufacturing Growth Slows Down in October

The domestic manufacturing industry of the Philippines has slowed down slightly for the month of October, according to the S&P Global Philippines Manufacturing PMI (purchasing managers index).

This comes as the country experienced three consecutive months of growth in the manufacturing sector.

According to S&P Global’s latest PMI data, manufacturing firms in the Philippines reported greater improvement in operating conditions in October.

However, overall growth that was experienced was slightly less than in September, which was driven by “greater demand, resulting in further expansions in output and new orders,” according to S&P.

Meanwhile, inflationary pressures in the country remain elevated, according to S&P, as average costs for October increased at a faster rate than in September.

The S&P Global Philippines Manufacturing PMI was registered at 52.6 in October, down from 52.9 in September, which is based on a survey of the purchasing managers of around 400 manufacturers.

S&P said that the reading was “modest overall.”

An above-50 PMI number equates to an overall increase in activity, meaning that there are more positive responses than negative, while a number below 50 equates to an overall decrease in activity.

S&P also reported that production levels and orders in the manufacturing sector have grown for the second consecutive month as demand conditions have improved.

Incoming new businesses also grew at a faster pace, according to S&P.

S&P Global Market Intelligence economist Maryam Baluch said in a statement that businesses have continued to increase their capacity and stocks to drive future growth.

“While ongoing growth meant firms remained positive overall, supply-side constraints and rising global inflation continued to weigh on the manufacturing sector,” Baluch said.

The S&P Global Philippines Manufacturing PMI is based on a survey of the purchasing managers of around 400 manufacturers. (GFB)