The country’s manufacturing sector extended its growth streak in August as new orders continue to come in on improving global demand, S&P Global said on Monday.
The S&P Global Philippines Manufacturing Purchasing Managers’ Index (PMI), which measures the country’s manufacturing output, stood at 51.2 in August.
This marked the 12th straight month that the index settled above the 50 threshold that separates growth from contraction.
A PMI reading above 50 suggests better operating conditions compared to the previous month, whereas a reading below 50 indicates a deterioration.
READ: PH sees slower manufacturing growth
While unchanged from July levels, the Philippines’ PMI reading was the second fastest among the top five Association of Southeast Asian Nations (Asean) member-countries, trailing behind Thailand’s 52.
“The Filipino manufacturing sector showed sustained and modest gains midway through the third quarter. Growth in output and new orders accelerated on the month, thereby highlighting improving demand trends. However, employment fell, and buying activity cooled, suggesting that manufacturers remain cautious about growth prospects,” S&P Global Market Intelligence economist Maryam Baluch said in a statement.
According to the report, demand for locally made goods expanded at its fastest rate in three months last month. However, demand from foreign customers dropped in August, as export sales fell for the first time this year. This suggests that the increase in demand was mainly driven by domestic factors.
Rising business needs led companies to increase their purchasing, but growth moved at its slowest pace in five months and remained modest overall.
Despite fewer jobs recorded in August, companies managed to have Mayor Abby nears ’24 revenue target
Makati City’s share in the National Tax Allotment (NTA) may have been slashed by 40 percent with the transfer of 10 Embo barangays to Taguig City, but chances are, Mayor Abby Binay will still be able to hit the city’s target revenue collection this year.