The manufacturing sector recorded a robust expansion in September, posting its best performance since mid-2022, according to a report released yesterday.
The headline S&P Global Philippines manufacturing purchasing managers’ index, a composite single-figure indicator of manufacturing performance, was recorded at 53.7 in September, up from 51.2 in August, and the highest since June 2022, indicating a solid improvement in the health of the Philippines manufacturing sector.
According to the latest report, the uptick in the headline index was driven by solid and matching rates of expansion in both new orders and output.
Anecdotal evidence pointed to improving underlying demand trends, new client wins and the successful launch of new products.
“Overall new orders increased at a much faster pace, despite demand for Filipino goods taking dropping notably in international markets. Consequently, manufacturers boosted production at a strong rate,” Maryam Baluch, economist at S&P Global Market Intelligence, said.
That said, the report said Filipino goods did not fare well internationally.
A second consecutive monthly decline in new export orders was recorded in September, with the latest downturn the most severe in over four years.
“While weak international demand and supply chain issues will act as headwinds, robust domestic demand is expected to drive growth. Moreover, increasing production needs and heightened confidence among manufacturers led to increased hiring and purchasing activity in September, the latter rising at the strongest pace since January 2023,” Baluch said.
“Price pressures also rose due to supplier charge increases and recent weather events affecting raw material costs. However, inflationary pressures remain
historically subdued which supports the central bank’s recent decision to ease monetary policy,” Baluch added.
