PH manufacturing sector ends 2 years of growth

MANILA  -The manufacturing sector in the Philippines ended in August a two-year expansion run, but many firms are gearing up for the yearly fourth-quarter sales boom, according to S&P Global.

The company’s Philippines PMI or purchasing managers index read at 49.7 in August, which signaled a contraction.

A PMI — which is based on a monthly survey of managers — of above 50 means an overall increase (more positive responses than negative) while less than 50 means an overall decrease (more negative answers than positive).

S&P Global Market Intelligence economist Maryam Baluch said that even if some manufacturers were beefing up their stocks in anticipation of greater sales in the coming months, decreased orders and hiring showed “visible cracks” in the sector.

“Moreover, headwinds from the high interest rate environment and inflation, as well as China’s less than expected post COVID growth, could potentially result in subdued growth in the coming months,” Baluch said.