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MANILA – The country’s manufacturing purchasing managers’ index (PMI) in September 2022 improved to 52.9, the highest in three months, S&P Global reported Monday.

The manufacturing score last month was higher than the sector’s performance in August at 51.2.

The September survey also showed that increases in output and new orders, easing of price pressure, and manufacturers’ confidence for the next 12 months have supported the sector’s health despite the lower demand from foreign markets for Philippine-made goods.

“Growth across the Filipino manufacturing sector quickened in September according to the latest PMI data. Firms noted that an increase in customer demand allowed production levels and factory orders to grow for the first time since June,” S&P Global Market Intelligence economist Maryam Baluch said in a statement.

S&P’s report also noted that manufacturing growth in September was primarily driven by domestic demand as orders from abroad continue to contract for seven consecutive months.

Hiring activities in the sector also increased for five straight months, it added.

“Adding to the good news, inflationary pressures, which have been uncomfortably high in the past couple of months, moderated in the latest survey period, hinting that inflation may have peaked,” Baluch said.

On the other hand, Baluch said inflation rates remained sharp, alongside a depreciating currency, could still affect the demand conditions as this could put upward pressure on costs.

Outlook of Philippine-based manufacturers has remained rosy in the next 12 months as business confidence recorded a 49-month high in September.

"Overall, sustained growth across the sector has meant that firms are largely optimistic in regards to expansion in output in the future,” Baluch said. (PNA)