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MANILA – The country has continued to post a strong manufacturing score in March this year as purchasing managers’ index (PMI) hit 53.2, higher than February’s reading of 52.8.
The S&P Global Manufacturing PMI, formerly under IHS Markit, said Friday manufacturing score last month was the highest since December 2018, which signals solid improvement in the condition of the local manufacturing sector.
It attributed the strong manufacturing performance last month to easing of restrictions as Metro Manila and key areas in the country were placed under Alert Level 1.
It added both new orders and output expanded in the previous month, with demand for Philippine-made products at its fastest pace since July 2019.
“Whilst the country recovers from the pandemic, with alert levels downgraded and restrictions eased, international concerns and supply-side performance constrained the momentum growth,” S&P Global economist Maryam Baluch said.
Baluch added the conflict between Ukraine and Russia, as well as the rising coronavirus disease 2019 (Covid-19) cases in China, created supply bottlenecks that led to further worsening of delivery time of inputs.
“(I)nflationary pressures reached record-highs as cost burdens and selling prices rose at faster paces,” she added.
The headcount of factories declined last month as companies reported resignation and some cost-cutting initiatives.
Meanwhile, Philippine-based manufacturers’ outlook for the next 12 months remains optimistic due to easing of restrictions, increasing demand, and positive election outcome.
“That said, solid upturn in demand and output led to manufacturing expectations remaining strongly optimistic. Firms sustained hopes that Covid-19 will pose a lesser threat to the economy and demand will continue to pick up," Baluch said. (PNA)
