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The S&P Global Philippines Manufacturing Purchasing Managers’ Index (PMI) for July 2023 showed an improvement in the condition of local factories.
Photo Insert: Manufacturers remained optimistic about their business operations for the next 12 months even as the number has eased from a five-month high in June.
In its report released Tuesday, Philippine manufacturing PMI last month, which measures the health of the manufacturing sector, increased to 51.9 from a score of 50.9 in June, according to a PNA report
“The latest PMI reading for the Filipino manufacturing sector signaled a stronger improvement in operating conditions at the start of the third quarter. Continued improvement in the underlying demand picture helped drive the latest upturn, with both production and new orders recording stronger rates of expansion. New export orders also increased during July,” S&P Global Market Intelligence economist Maryam Baluch said.
The S&P reported that foreign demand for Philippine-made goods grew for seven months in a row, supporting the manufacturing PMI for July. In terms of prices, a slight increase in input and output charges was recorded last month, but the rate has eased compared to the highs seen over the past three years.
“The latest data adds to our current forecast that the central bank will abstain from further tightening its monetary policy in the near-term,” Baluch said.
On the other hand, hiring activities of factories declined for the first time in five months as manufacturers kept up with production requirements. Meanwhile, manufacturers remained optimistic about their business operations for the next 12 months even as the number has eased from a five-month high in June.
“Lastly, after vendor performance improved in May for the first time in nearly four years, July data signaled the most pronounced extension to average lead times in seven months. If vendor performance further deteriorates, this could pose a headwind for the Filipino manufacturing sector,” Baluch added.
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