MANUFACTURERS recorded higher business confidence for the next 12 months despite the factory output decline in March.
In a report released on April 2, S&P Global Philippines Manufacturing Purchasing Managers’ Index (PMI) said business sentiment in March was the highest since December 2024 as manufacturers anticipate the demand to pick up in the coming months, citing their plans for new projects and additional clients.
“Nonetheless, businesses remain optimistic in their year-ahead production forecasts, with confidence levels at a four-month high. Optimism was reflected in firms’ decisions to maintain their purchasing activity and build stocks,” S&P Global Market Intelligence economist Maryam Baluch said.
Last month, manufacturing PMI fell below the neutral score of 50 to 49.4, the first time the local sector deteriorated in 19 months, or since August 2023.
It was lower than the 51 PMI recorded in February 2025.
PMI lower than 50 means deterioration of manufacturing activities while above the neutral score means improvement.
“Panelists noted that growing competition and fewer clients led to a reduction in new orders, with output scaled back as a result. The growth in new export orders seen previously also dissipated, with March data signaling a marginal drop in new business from overseas,” Baluch said.
Employment activities were flat last month and inflationary pressures remained contained and subdued, the economist added. (PNA)
