MANILA – The country’s manufacturing purchasing managers’ index (PMI) reached its 13-month high in February at 52.3, supported by resilient demands both domestically and abroad, the IHS Markit reported Monday.
Manufacturing PMI in February was higher than the 52.1 score in January this year.
IHS Markit also recorded growth in new orders, exports, and hiring in the previous month.
“February survey data signaled a continuation of respectful growth across the Philippines’s manufacturing sector,” IHS Markit economist Joe Hayes said.
Among its Asean neighbors included in the IHS Markit survey, the Philippines’ manufacturing PMI is the highest in February compared to Indonesia’s score of 51.9, and Vietnam’s index of 50.
Thailand and Malaysia registered a decline in factory output last month, with PMI of 49.5 and 48.5, respectively.
Indices above 50 signal growth, while below 50 shows deterioration in factory activities.
Hayes added the downside risk of coronavirus outbreak in the local manufacturing sector is isolated to supply-side, with deliveries from the mainland dented firms’ stockpiling.
“Given that stocks of purchases have risen strongly in recent months, firms should have appropriate buffers in place to withstand delivery disruptions. But if they continue, production volumes could be adversely impacted,” he said.
According to the survey, companies here remain optimistic in the next 12 months, seeing output growth, ample pipeline work, aggressive sales target, and expansion plans. (PNA)
