Mfg output slows in July

MANILA, Philippines - The country’s manufacturing activity likely continued to slow in July, the latest Purchasing Managers’ Index (PMI) of the All-Asian Centre for Enterprise Development Inc. (ASCEND) showed.

The PMI index for manufacturing was down by 1.72 index points to 53.30 in July from June.

ASCEND said in a research note that the PMI index for manufacturing declined for the second consecutive month from May.

It also said that the July result was the lowest recorded index in the past 12 months, but noted that the index was still above the growth threshold.

The PMI gives an indication of the economy’s performance. An index above 50 indicates economic expansion while an index below 50 implies a contraction.

“The downtrend is possibly attributable to external and internal factors,” ASCEND said.

It noted that export markets in Europe and some Asian countries are shaky based on their country PMIs.

Internally, it said, manufacturers are expecting lower demand for this month and so adjustments have been made as early as July.

Of the five variables making up the PMI, four decreased from last month and from a year ago which are new orders, production, employment, and supplier deliveries.

The remaining variable, inventories, meanwhile rose from last month and from the previous year.