MANILA – The output of the Philippine manufacturing sector fell for the fourth consecutive month in March to mark its lowest level in seven months, data released by Nikkei Inc. on Monday revealed.
The Manufacturing Purchasing Managers Index (PMI) was recorded at 51.5 in March, slower than the 51.9 in February, and the slowest in seven months.
The PMI is a composite single-figure indicator of manufacturing performance, with 50.0 as the threshold. A reading above 50 indicates growth, and a reading below 50 indicates a contraction.
“Contributing to the fall in the headline PMI was a notable drop in the rate of output expansion in March,” Nikkei said in its monthly report.
“While many businesses saw volumes of work increase from February, others reported decreased production due to falling sales and reduced supply of raw materials,” it elaborated.
According to Nikkei, manufactures were boosted by strong customer demand, with some highlighting increased activity in the construction sector.
Looking ahead, IHS Markit economist David Owen said that the PMI could continue to slide if the port congestion problem in Manila remains unaddressed.
“Port congestion at Manila continues to increase lead times and reduce raw material supply, and will likely harm exports if the problem is not contained,” he said.
“Overall for the first quarter, the PMI points to weaker growth in manufacturing production compared to the end of 2018, with employment trends also remaining subdued,” added Owen. (GMA News)
