BSP indicators point to continued growth of PH

The latest economic indicators point to the continued growth of the Philippine economy this year, despite the adverse effects of natural calamities on the local front and headwinds from abroad.

In its quarterly inflation report, the Bangko Sentral ng Pilipinas (BSP) cited a significant jump in the country’s Purchasing Managers’ Index (PMI) last November.

The monthly PMI is a reliable leading indicator for increases or decreases in output of the manufacturing and services sectors.

The composite PMI remained above the 50-point threshold to reach 63.3 percent in November, higher than the 60.1 percent in September.

Any score higher than 50 indicates an expansion in output over the coming months, while a score below 50 shows a likely decline in output.

The PMI score for manufacturing alone was 54.6 in November 2013, lower than the 59.5 index and 54.9 index registered in September 2013 and November 2012, respectively.

“Although still in expansion mode, the manufacturing industry experienced a slowdown due to the disruption of business activities in the aftermath of Supertyphoon ‘Yolanda,’” the BSP report read.

The PMI for the services sector in November was significantly higher at 68.3 from 60.2 in September 2013 and 65.2 posted in November 2013.

“All key indices expanded relative to September 2013 levels,” the BSP said.

A decline was posted in the retail and wholesale PMI, which stood at 58 in November 2013 from 60.6 in September 2013 and 59.8 in November 2012.

“All major indices, except for employment, slowed down relative to September 2013 levels,” the report read. The BSP said the sector grew at a slower pace due to uncertainties in supply and demand conditions after the onslaught of Supertyphoon Yolanda in the Visayas.

On the demand side, the BSP cited the continued strength in car and power sales—both indicators of consumer confidence.