The Philippines has continued to post a high level of manufacturing index in November, the Manufacturing Purchasing Managers’ Index (PMI) of IHS Markit and Nikkei reported Thursday.
The country posted an index of 56.3 last month, which signaled a strong expansion of the local manufacturing industry.
The growth, however, decelerated from October’s manufacturing PMI of 56.5.
As industry output continued in November, this has stretched the sequence of increase to 11 consecutive months.
Production volume and workforce continued to increase, driving the high level of manufacturing PMI for the country last month.
“The Philippines continued to enjoy strong growth in the manufacturing sector, underpinned by solid client demand,” IHS Markit economist Bernard Aw said.
Philippine-based companies noted that strong client appetite and increasing production capacity pushed the industry for higher total output.
The survey also said the local manufacturing sector continued to record new business inflows in November — although in a slower pace from October, while posting highest new export orders in the previous month.
Expansion of workforce in the manufacturing sector in November was highest since July.
“Firms had to continue expanding employment levels and input purchases to keep up with higher operational requirements,” Aw added.
He also noted that the peso depreciation has driven some firms to bring forward purchasing plans.
The economist said the weaker currency has also put cost pressure to manufacturers which rely heavily on imports.
“However, firms alleviated these cost pressures by passing on some of the higher input costs to customers by hiking their output prices,” the survey stated.
Meanwhile, the Philippines topped ASEAN countries in the latest manufacturing PMI.
The country was followed by Vietnam with a manufacturing PMI of 54, Myanmar with 50.2, Indonesia with 49.7, Thailand with 48.2, Malaysia with 47.1, and Singapore with 45.2.
The PMI is an indicator of the manufacturing sector’s health based on sub-components, such as new orders, output, employment, suppliers’ delivery times, and stocks and purchases.
Indices above 50 signal improvement in business conditions while readings below 50 show deterioration. (PNA)
