MANILA -- Output of the country’s manufacturing sector managed to hit a near two-year high despite a sharp drop in new export orders in November, the IHS Markit manufacturing purchasing managers’ index (PMI) reported Monday.
IHS Markit data show that the Philippines’ PMI in November rose to 54.2 from 54 in October, the fastest output rate in 23 months.
This was the fourth month in a row of unabated growth for the country's manufacturing PMI.
Philippine manufacturing sector remains robust despite new export orders last month fell in its sharpest rate.
“[E]xport orders continued to decline, with the latest drop the quickest seen the survey began nearly three years ago. Manufacturers were unfazed though, as domestic demand was strong enough to offset the fall,” IHS Markit Economist David Owen said.
Owen, however, noted that if this trend in exports continues due to global trade slowdown, this may dampen output growth in 2019.
The survey also said manufacturers felt that input price increases had slowed down last month, which in-turn, is expected to keep the prices of their products steady.
“Input prices eased to their weakest rate of inflation all year in November. Recent pressures from the TRAIN law and the exchange rate with the dollar are showing signs of wavering, offering hope of a more settled end to 2018 for manufacturers,” Owen added.
The IHS Markit said firms remain confident in the Philippine manufacturing sector during the November survey.
“Many firms expect the current run of sharp growth to continue, while others highlighted the development of new products as a factor likely to boost demand and raise output at their business,” IHS Markit said.
Meanwhile, Vietnam recorded the highest PMI in ASEAN last month at 56.5, followed by the Philippines at 54.2, Myanmar at 51.3, and Indonesia at 50.4.
On the other hand, countries whose manufacturing sector showed deterioration in November were Thailand with PMI of 49.8, Malaysia at 48.2 and Singapore at 47.4. (PNA)
