Factory activity hits 29-month high in November

MANILA, Philippines — Philippine manufacturing activity grew at its fastest pace in 29 months due to strong demand for locally made products.

In a statement yesterday, S&P Global said that the Philippines’ headline purchasing managers’ index (PMI) for manufacturing rose to 53.8 in November from 52.9 in October.

PMI, a gauge of manufacturing performance, is generated from the survey responses of around 400 manufacturers. It considers the following factors: new orders, output, employment, suppliers’ delivery times and stocks of purchases.

“November saw the Filipino manufacturing sector ramping up production in anticipation of greater sales in the coming months,” S&P Global Market Intelligence economist Maryam Baluch said.

She said hiring, purchasing activity and post-production inventories all posted increases in preparation for higher sales.

“New sales recorded further growth, as demand conditions continued to improve,” she said.

Manufacturers, however, faced supply-side challenges due to recent typhoons that hit the country.

Rising inflationary pressures also posed a challenge to Philippine manufacturers’ operations.

Overall inflation quickened to 2.3 percent in October from 1.9 percent in September as food prices posted faster increases.

From January to October, inflation averaged 3.3 percent, within the Bangko Sentral ng Pilipinas’ two to four percent target range.

The Philippine Statistics Authority is set to release on Dec. 5 the inflation data for November.

Despite the challenges, Baluch said “firms remained optimistic about future output, with hopes that improved demand trends and the upcoming election year will provide a boost to the sector.”