MANILA – The country’s manufacturing purchasing managers’ index (PMI) recorded its lowest score in three months in August.
IHS Markit Philippines Manufacturing PMI for August 2020 recorded a score of 47.3 from 48.4 in July.
The manufacturing index in June was close to stable condition at 49.7.
The private survey noted that the imposition of stricter quarantine measures in Mega Manila had an adverse impact on the manufacturing sector last month.
From August 4 to 18, Metro Manila and the provinces of Bulacan, Cavite, Laguna, and Rizal were placed under modified enhanced community quarantine (MECQ) due to a steep increase in coronavirus disease 2019 (Covid-19) cases.
“As a result, the Philippines Manufacturing PMI fell back to its lowest in three months in August,” IHS Markit economist David Owen said Tuesday. “The downturn was linked to a sharp drop in new orders and a subsequently steep reduction in output, as client demand fell notably due to the new restrictions.”
On the other hand, the manufacturing score in August remained well above the country’s record low of 31.6 in April 2020.
“Job losses remain apparent as firms continued to trim capacity at a steep rate to adapt to the new economic environment. Stocks were also reduced, extending the run of depletion to six months,” Owen added.
Filipino firms’ outlook on the manufacturing sector remained subdued in August as their confidence was much weaker due to uncertainties of the path of the pandemic and quarantine measures, the survey noted.
The manufacturing PMI provides data on the overall health of a country’s manufacturing sector.
Manufacturing scores below 50 show deterioration of the sector’s activities, while indices above 50 reflect improvement.
Among Southeast Asian countries, only Myanmar and Indonesia recorded a stable manufacturing condition in August at 51.7 and 50.8 respectively, amid the Covid-19 pandemic
Scores of Thailand and Malaysia are likewise nearing stability at 49.7 and 49.3, respectively.
Vietnam’s manufacturing score last month was at 45.7 and Singapore recorded an index of 43. (PNA)
