MANILA – Philippine factories solidified their performance at the end of third quarter of the year, recording a 53.7 purchasing managers’ index (PMI), the highest since mid-2022, S&P Global Manufacturing PMI reported Tuesday.
The country’s manufacturing PMI in September 2024 was also stronger compared to the 51.2 index in August this year.
S&P Global Market Intelligence economist Maryam Baluch said the significant improvement in the Philippines manufacturing performance in September was mainly driven by the sharp expansions in factory output and new orders.
Baluch said the domestic demand buoyed the local industry despite the notable drop in orders from overseas markets.
“While weak international demand and supply chain issues will act as headwinds, robust domestic demand is expected to drive growth,” she said.
The survey said manufacturers also increased their hiring and purchasing activities amid higher production and heightened business confidence for the next 12 months.
S&P said job generation in September remained modest but the strongest since March this year.
On the other hand, inflationary pressure due to higher supplier prices and weather disturbances was also observed last month.
“However, inflationary pressures remain historically subdued which supports the central bank’s recent decision to ease monetary policy,” Baluch said.
Meanwhile, compared to ASEAN neighbors that recorded positive manufacturing PMI in September, only the Philippines posted an increase in index.
Malaysia, Indonesia, Vietnam, and Myanmar posted indices below 50, reflecting a deterioration of their local manufacturing sector.
Those above the neutral scores of 50, including the Philippines, Singapore, and Thailand, meant an improvement in their factory performances. (PNA)