The manufacturing conditions in the Philippines in November reached an eight-month high amid easing coronavirus disease 2019 (COVID-19) restrictions in the country.
The IHS Markit Philippines manufacturing purchasing managers’ index rose marginally to 51.7 in November, from 51 in October, registering above the 50 no-change threshold that separates expansion from contraction.
The report released yesterday said although only modest, the latest uptick was the strongest in eight months, and in line with the long-run series average.
“A series of relaxing COVID-19 restrictions prompted increased footfall and greater client demand,” the report said.
“However, firms continued to face global material shortages with delivery delays and intense cost pressures also adding to production difficulties,” it added.
Shreeya Patel, economist at IHS Markit, said stockpiling and efforts to boost production were a key theme in the latest release.
“But supply-side issues and the lack of availability of raw materials weighed on production.
Voluntary resignations were also of concern with headcounts falling continuously over the last year-and-a-half,” Patel said.
“Encouragingly though, firms were able to keep backlogs at bay, suggesting that companies, for now, are dealing with labour shortages,” Patel added.
Nevertheless, the report said hopes of a return to normality and higher sales led companies to raise their output expectations for the year ahead which reached a 21-month high.
“On the COVID-19 front, low vaccination rates remain one of the sectors’ largest threats.
The Philippine government nevertheless remains committed to inoculating the population before the end of 2022,” Patel said. – Angela Celis
