MANILA – The country’s manufacturing sector has logged an uptick in its November performance, the S&P Global manufacturing purchasing managers index (PMI) reported Thursday.
The records showed the manufacturing PMI improved to 52.7 from last month’s 52.6.
An index above 50 signals improvement in the manufacturing sector while below the neutral score means deterioration.
The uptick was linked to greater demand conditions that led to higher sales and output, PMI said, adding that the output and new orders growth rates last month were the highest since June of this year.
“The improvement across the sector primarily stemmed from greater demand conditions which drove higher sales and output,” S&P Global Market Intelligence economist Maryam Baluch said.
The report added that domestic demand supported Philippine-based factories in November, as new orders from foreign markets continue to decline since March. However, the contraction last month was softer than the decrement in October.
Filipino manufacturers also increased purchasing inputs in November in anticipation of higher orders in the coming months.
The S&P also noted the decline in the work backlogs due to improved production efficiency.
On the other hand, surveyed manufacturers recorded a decline in headcount that ended the series of job creation in May this year.
Resignation among employees was one of the common reasons cited for the fall in workforce numbers, the S&P report added.
Inflationary pressures remained elevated, with input prices increased last month due mainly to higher energy costs and peso depreciation.
Factories passed on the increasing costs to clients as S&P observed an increment in output prices.
“As the manufacturing sector has heavily relied on demand to help boost growth, the rise in rates, with the prospect of further potential monetary tightening, could impact customer spending,” Baluch added.
Manufacturers remain optimistic for the next 12 months often linked to greater client activity, economic recovery, and companies undertaking new projects. (PNA)