Factory Activity Reaches 6 Month High Last December

In the S&P Global Philippines Manufacturing Purchasing Managers’ Index (PMI) hit a six-month high of 53.1 last December, from a 52.7 last November which shows a “solid improvement in the health of the Filipino manufacturing sector.”

Last December likewise marked the 11th straight month of expansion for manufacturing activity.

“The latest PMI data signaled sustained growth across the Filipino manufacturing sector. The release of pent-up demand because of the COVID pandemic continued to help the recovery of the manufacturing sector this year. The latest upturns in output and new orders were stronger than the survey averages,”  mentioned S&P Global Market Intelligence Economist Maryam Baluch.

With the available PMI reports, the Philippines scored the highest among its other Association of Southeast Asian Nations (ASEAN) neighbors for the month.

Indonesia came in second with a PMI reading of 50.9. While Malaysia, Vietnam, and Myanmar all had contractions last December at 47.8, 46.4, and 42.1 respectively.

For the Philippines, S&P global recorded that new orders and production have grown for a fourth consecutive month.

“A solid expansion in production levels was reported during December. The rate of growth quickened in the month, indicating the fastest rise in output levels since June,” said the report.

Aside from this, firms in the country began hiring new workers last December.

“Increasing business requirements resulted in firms resuming hiring activity in December, following the first fall in headcounts in eight months during November. While the return to growth was clearly a positive indication of improvement across the Filipino manufacturing sector, the rate of job creation was only fractional overall,” mentioned S&P Global.

Source: Business World