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MANILA – The condition of the domestic manufacturing sector improved in October 2022, according to the S&P Global Philippines Manufacturing Purchasing Managers’ Index (PMI) report on Wednesday.
S&P Global recorded a softer growth for Philippine factories last month at 52.6 from 52.9 in September.
S&P Global Market Intelligence economist Maryam Baluch said the continued improvement of the manufacturing score in October signaled growth in buying activities and employment among local producers.
“The latest PMI data revealed yet another round of expansion across the Filipino manufacturing sector. Demand conditions continued to improve, resulting in a further rise in output and new business placed at good producers,” Baluch said.
Demand from abroad slowed down the manufacturing performance last month, as overseas orders logged its sharpest contraction since the decline began in March this year.
As inflation gained pace in October, S&P Global said price pressures continued to burden Philippine-based manufacturers.
“Despite input costs increasing at a quicker rate, firms raised their charges at a slightly lower pace. The seasonally adjusted index fell for the second month in a row, to signal the softest uptick in output charges since February,” the report said.
Baluch said manufacturing firms remained optimistic in the next 12 months as the industry continued to grow, but supply-side constraints and rising global inflation still weighed on the domestic manufacturing sector.
“Anecdotal evidence noted shipping delays, bad weather, and congestion continued to hamper production. Moreover, currency weakness and global price rises in energy and materials resulted in the rate of input price inflation regaining momentum,” she added. (PNA)
