MANILA – The Philippine manufacturing sector registered a recovery in May, driven by acceleration in new orders during the period, results of the latest monthly survey conducted by IHS Markit for Nikkei Inc. showed.
The Nikkei Philippines Manufacturing Purchasing Managers’ Index (PMI) rose to 51.2, from 50.9 in April. It was the first time in nine months that the index recorded an increase.
The PMI is a composite indicator of manufacturing performance, with 50.0 as the threshold. A reading above 50 indicates growth, and a reading below 50 indicates a contraction.
“Filipino goods producers reported an improved picture in May, as output growth strengthened amid a sharper increase in new orders,” David Owen, economist at IHS Markit, said in an accompanying statement.
According to Nikkei, producers reported an upswing in total new orders in May, reporting the highest mark in four months.
They also reported an increase in demand from local customers, as well as improvement in overseas sales, with new export orders growing the quickest in nearly a year.
“Firms were helped by a rise in foreign demand for only the second time since last September as the global trade war intensification led to weaker export conditions,” explained Owen.
“This should ease some nerves in the wake of further tariffs announced by the US and China,” he added.
Global concerns have risen as the world’s two biggest economies have been slap billions of dollars of tariffs against each other’s products.
In the same report, Nikkei noted several resignations experienced by producers in May and job losses were at the highest in 15 months.
“Panelists again reported several employee resignations in May. This was also noted in April, but the problem appeared to intensify as the rate of job losses accelerated to a 15-month high,” said Owen.
“Manufacturers may need to curb these resignations if they hope to sustain higher production levels,” he added. (GMA News)
