MANILA – The country’s manufacturing score for February recorded a weaker growth compared to January’s purchasing managers’ index (PMI), IHS Markit reported Friday.
IHS Markit’s Nikkei Philippines Manufacturing PMI showed that the sector’s score fell from 52.3 in January to 51.9 in February, which is the lowest in the past six months since August last year.
IHS Markit economist David Owen said the slowdown in manufacturing PMI was mainly brought by softer demand from the domestic market.
Order book volumes in February hit a seven-month low, IHS Markit reported.
Despite the slower growth, the Philippines’ manufacturing sector had the second highest score in ASEAN, just behind Myanmar with PMI of 53.1.
Export order grew for the first time in the past six months in February, signaling the improvements in the overseas market.
The stronger demand overseas made firms to introduce new branches and machinery, supporting the output growth last month.
Purchasing activity also accelerated in February with stock of purchases slightly increased due to higher production requirements.
“Stocks of finished goods fell for the first time in eight months during February, with firms pointing to faster deliveries for their customers,” IHS Markit said.
Employment likewise rose in the previous month after declining at the start of 2019.
With the easing of inflationary pressures, Owen noted that outlook of firms also improved.
“With inflation falling and employment strong, manufacturers will likely see improved business conditions ahead,” said Owen. (PNA)
