Services sector grows at faster rate in February

MANILA, Philippines - Services grew at a faster pace in February from January, driven by increased business activities in the sector according to the Asian Center for Enterprise Development Inc. (Ascend).

Data released by Ascend showed that the purchasing managers’ index (PMI) rose to 62.1 in February, up by four points from 58.1 in January.

In a note, Ascend said an index above 50 indicates economic expansion and an index below 50 implies a contraction.

Ascend is the research arm of the Philippine Institute of Supply Management, which issues the PMI.

January data from the National Statistics Office (NSO) showed that of the country’s labor force of 40.3 million, 52.7 percent were employed in the services sector.

Of the 105 supply chain managers asked about their company’s performance in February, 34.58 percent said they experienced expansion from January.

“The PMI Services index has been above the economic threshold for twelve months indicating a consistent economic growth. The increase in all of the indices contributed on the good performance of Services Industry,” the study said in a note.

Some 28.97 percent of the respondents registered new orders, those that experienced expansion in outstanding business 19.63 percent, price changes 24.30 percent, increase in operating cost 27.10 percent, and employment 10.28 percent.