Factories in the Philippines are experiencing a boost in output, with purchasing managers showing increased optimism in April. According to a report from market intelligence firm S&P Global, the Philippine Purchasing Managers’ Index (PMI) rose to 52.2 in April from 50.9 in March, marking the highest PMI since November 2023.
The report indicates that this continued growth suggests manufacturers are expanding their inventory in anticipation of higher market demand. Maryam Baluch, an economist at S&P Global Market Intelligence, stated that new orders saw a quicker rate of expansion, leading to a solid rise in production. Additionally, business from overseas markets also saw stronger growth.
The report highlighted that hiring and purchasing activity remained in growth territory as production requirements increased. Stock-building in anticipation of future output also became more widespread. The relatively subdued inflationary environment indicated in the price data could lead to more competitive pricing in the coming months.
The report also noted a busier work pipeline supporting the growth in goods production, with the rate of expansion being the most pronounced in four months. This increased demand also led to efforts to raise hiring, with employment growth in the manufacturing sector continuing for the third consecutive month.
However, the accelerated growth also put pressure on capacity, leaving some firms struggling to complete the work at hand. As a result, the rate of backlog depletion was reported to be “marginal overall,” and the weakest since August of last year.
