PNA file photo
MANILA – The S&P Global Manufacturing Purchasing Managers’ Index (PMI), an indicator of manufacturing performance, recorded a fractional downturn in August as factory orders from overseas fell for the first time in a year due to waning demand and poor weather conditions.
In a report on Friday, S&P Global said the Philippine manufacturing PMI last month fell to 49.7 from 51.9 in July 2023.
"The latest data for the Filipino manufacturing sector pointed to a mixed picture. While the headline PMI figure signalled an end of the growth period seen over the past two years, at the same time, many companies were also gearing up for greater sales in the coming months, with buying activity and stocks raised in August,” S&P Global Market Intelligence economist Maryam Baluch.
“However, weak underlying demand trends as pointed by the first drop in new orders in a year and the ongoing reductions in staffing levels shows visible cracks in the sector. Moreover, headwinds from the high interest rate environment and inflation, as well as China's less than expected post Covid growth, could potentially result in subdued growth in the coming months," Baluch added.
The report said the growth of new orders from overseas was also marginal.
Manufacturing firms also cut back on their staffing levels for the third consecutive month.
In terms of prices, S&P Global reported a further increase in cost mainly due to rising fuel and raw material costs.
Despite these, manufacturing firms expect a growth in output in the next 12 months.
The report said confidence level rose to a seven-month high as firms expressed optimism that market conditions will improve and production will grow due to the launch of new products. (PNA)
